Reasons to Buy a Home
If you've considered buying a home, you should keep thinking along those lines. This time of year is a good time to buy, particularly in December to January and March to April. Although foreclosure increases have changed the mortgage rates in the last year, home prices have continued to go down to compensate for the mortgage rates.
If you have about 10 percent of your desired home's price saved up, you're at an even better starting point to buy a home. If you can afford to stay in a home for more than five years, you can ride out the costs of a home such as the closing costs and the slowly rising appreciation rate.
Home ownership is a secure way to obtain financial security and assets. Unfortunately, rising costs of homes have kept many younger people from buying homes until much later in life. Fortunately, the last few years have brought lower costs of homes in major states like California and Arizona, which can help many younger people jump into home ownership at a smart price.
Low rates- Recently there have been an explosion in foreclosure properties. In addition, many homes are not appreciating less than 6 percent per year. This is good news for home buyers because there are many homes that aren't selling and more new homes being built each day, bringing down the cost of the home for you.
Mortgage rates are still relatively low as well, meaning you could be paying ,000 per month mortgage on a 0,000 home now rather than paying upwards of ,500 per month mortgage in a few years when higher interest rates hit.
Tax breaks- Home ownership gives great tax breaks. You can deduct your mortgage interest and real estate taxes on your annual tax return. This means you'll get more back from your tax returns, which means more money in your pocket each month.
Own your property- Buying a home is a way to break away from annoying landlords, roommates, and the rising costs of rent. You have your own piece of land to plant a garden, play with your pets, or play with your children.
This also means you must put aside some money to pay for home repairs because you are responsible for these costs now. Usually if you save a little extra money each month, you will be prepared when a big home repair is needed. To offset these DIY repairs, you can also consider buying a condo or townhome starter property, in which the HOA does the repairs, lawn mowing, snow removal, and other tasks for you.
More assets- Buying property now means you can watch it appreciate in the years to come. This is a big financial responsibility, but also a large asset. Buying a starter home now and watching it appreciate over the next few years will give you the money you need to buy your dream home. You will also benefit from buying the home at a lower price now, rather than at a higher price a few years from now.
A home also means capital to borrow or secure you to fund your children's educations, prepare for retirement, or start a new business.
If you believe that now is the best time to get into a home, look at Fayetteville Arkansas real estate and customize your home search. Or check with a real estate agent in your area to get started looking at properties.
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