Top 11 Reasons To Buy A Home Now

Dated: 12/28/2016

Views: 72

1. Buying is still cheaper than Renting – Even with the recentincrease in prices and rates, it’s cheaper to buy than to rent in all 100 ofthe largest realestate markets, according to an analysis by, it’s 37 percent cheaper to buy than to rent, assuming thebuyer stays in the home for at least seven years. In fact, rates would haveto more than double to over 10 percent for markets to tilt in favor of rentingin 78 of the largest 100 real estate markets.

2. Eventual economic recovery will almost certainly boosthousing prices. Following the recessions of 1973-75 and 1981-82, homeprices rose by about 20% in real terms (i.e., not counting price increasesfrom inflation) within seven years or less. The drop in home prices inthe most recent recession was at least four times as large as the declinesin those two previous recessions. As a result, the recovery is takinglonger to get going, but the eventual rebound could be proportionatelygreater. Price increases resulting from inflation would be on top of thosereal gains.

3. Prices Will Continue to Rise. The Home Price ExpectationSurvey polls a distinguished panel of over 100 economists, investmentstrategists, and housing market analysts. Their most recent report releasedlast week projects appreciation in home values over the next five years tobe between 12.3% (most pessimistic) and 32.8% (most optimistic).

4. Mortgage Interest Rates Are Increasing. As reported byFreddie Mac, interest rates for 30-year fixed-rate mortgages have risenabout one full percentage point over recent historic lows. The NationalAssociation of Realtors, the Mortgage Bankers Association, Freddie Macand Fannie Mae, in their July forecasts, have all projected 30-year-fixedmortgage interest rates to be between 4.8 and 5.1% by this time next year.An increase in rates will impact YOUR monthly mortgage payment.Whether you are moving up or moving down, your housing expensewill be more a year from now if a mortgage is necessary to purchaseyour next home.

5. Landlords have a tendency to increase rent every year ortwo to accommodate for inflation. This won’t happen if you own yourhome. Having a fixed-rate mortgage means that you’ll make the samepayment for the life of your loan, so you won’t ever pay more unlessyou want to.

6. Home prices won’t be this low forever. Prices havebeen sitting pretty low for a while now, but this isn’t going to last: homeprices are officially on the rise. 2013 could be your final chance to snaga cut-rate price before it becomes ancient history.

7. Save a lot on next year’s taxes. As a homeowner, you’ll be ableto deduct everything from real estate taxes, to private mortgageinsurance, to loan points paid on a purchase.

8. Owning your home feels a lot more permanent than renting.Your kids won’t have to worry about changing schools, making newfriends, or having to start anew in a strange city every few years. If youhave kids, buying a home is one of the best decisions you can make fortheir mental well-being.

9. You should think of your mortgage like a “forced savings”program. Yes, you’re writing your mortgage company a check eachmonth, but that money, save the interest you’re paying, is still yours inthe form of equity. In essence, the difference between renting andowning a home is that homeownership lets you build up your ownmonetary value, instead of your landlord’s.

10. Making mortgage payments on time will boost your creditscore and show that you’re capable of taking on big financialresponsibilities. And your credit score impacts so much more thanyour mortgage rate: It can affect the interest rate you get on car loans,credits cards, and any other kind of loan that you’ll conceivably take outin your lifetime. Good credit can be a powerful tool.

11. You can’t help but feel a real sense of accomplishmentwhen you’re handed the keys to your very first home. Your house is thephysical manifestation of your years of hard work and financialresponsibility. And nothing says “success story” like owning your veryown piece of the American dream.

-Austin Title-

Latest Blog Posts

Jan 5 2018 51477 1

10 Secrets to Make Your Wardrobe Last Longer You've spent good money on your wardrobe, so it makes sense to know a few simple ways to keep it neat, clean and long

Read More

Travis County Market Statistics

I get asked a lot about how the housing market is doing. If you need access to any data or specific information, please let me know. I can even do neighborhood specific! Here's November's overview

Read More

Get This Weeks Open House List Dec 16th 2017

Click this link to get a list of open houses in your area this weekend! >>>>Open House List<<<<If you would like to search for homes in your area, get pre-approved, find

Read More

Crowd Funding To Purchase Your Home

With Social Media so popular, have your heard of Crowd Funding to purchase a home? I had not heard of it until I sat down to visit with a lender from CMG Financial to add her to my preferred.

Read More