Like many people, you may have been monitoring homes for sale online for many months,…thinking about when to purchase. Purchasing a home is a major decision with several factors to weigh. The following is information on why buying a home in 2014 is a wise decision.
Owning a Home Is A Better Investment Than Renting
If you itemize your deductions on your federal taxes, you may include home loan interest, property taxes, and in certain cases, mortgage insurance premiums. Typically, tax benefits make home ownership less expensive. When comparing home costs, do not forget to include this figure in your calculations.
Increased Cost to Rent
There are two factors that have resulted in rising rental costs. First, a lot of people who lost their properties during the real estate slump were forced to rent. Secondly, the number of properties for sale has been below demand so home buyers must rent until they can purchase. Both of these have elevated demand, leading to rising rental costs. The gap between renting versus buying is not that drastic right now.
A Strong Real Estate Market
If you have been hoping for prices to bottom out before taking action, you have already missed it! In many markets, home prices are inclining. You may want to purchase a property this year before it rises any more. As a bonus, if values continue to improve, the value of your investment will appreciate in a short period of time.
Mortgage Rates May Change
Although interest rates have increased during the last 12 months, they are still historically low. They are expected to rise more in the months to come, so it might be best to lock in a rate before that happens. Even a half point shift will have a big impact on the price for which you qualify.
Changes in the Mortgage Rules
Changes in the mortgage market continue. Qualification rules are stricter, making it harder to qualify. Maximum loan amounts are also decreasing. Further changes are anticipated for the coming months, so it is best to start the purchase process now.
Reviewing Why Buying A Home In 2014 Is A Wise Decision
At certain times, it is best to rent than purchase, but it currently does not appear to be one of them. The cost of renting, real estate values, interest rates, and mortgage industry changes make it clear that if you wish to buy a property, it is a great time to do so! When evaluating why buying a home in 2014 is a wise decision, do not forget that there are many personal aspects of your situation to weigh. This blog does not discuss them. For expert guidance, contact Christopher Graves at Sierra Pacific Mortgage Company at christopher.d.graves@gmail.com