When I was young and renting an apartment, my father told me something that stuck with me for the rest of my life. He said: “Either you keep renting or buy a place of your own. No matter what, you are going to be paying a mortgage, might as well make it your own and not your landlord’s.” If you are on that fence deciding if now is the right time to purchase a home, take these few points into consideration.
- Prices will continue to rise: CoreLogic’s latest Home Price Index reports that home prices have appreciated by 6.6 percent over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.3 percent over the next year. If you take the experts’ advice about home prices continuing to rise, waiting another year does not make sense. Start your search now by looking online and seeing if there are any homes in your price range currently available and go take a look.
- Mortgage rates are increasing: All the major banks are predicting mortgage rates will continue to rise over the next year. An increase in rates will impact your monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
- Make it your own: I remember renting and always wanting to make improvements and renovations. However, most things were left to the discretion of the landlord. Something as simple and wanting to paint a room or make a garden was a process. When you decide to buy, those weekend projects become enjoyable and fun as you are putting equity back into the something of your own!
- It’s an investment in your future: According to CoreLogic’s most recent Home Price Index Report, home prices are projected to appreciate by 4.3 percent over the next 12 months. This means you will start making money the day you set foot in the house! Also, you will be making an investment in your future. Giving you and your family a place to call HOME.
- Tax savings: As a renter, there is no tax break for the mortgage payment you are making for your landlord. However, one way to save on taxes is to own your own home. You may be able to deduct your mortgage interest and property taxes.
- Never deal with increasing housing costs: Have you ever received an email or call from your landlord about rent increasing? This is never fun, as it could be the difference in being able to stay or having to look for another apartment within your budget. When you purchase your home with a fixed-rate mortgage, you lock in your monthly housing cost for the next 5, 15 or 30 years.
You might never feel ready to take the leap and purchase your first home. When you sit down really think about the upside of owning a home and all the benefits, now is the time to do it! Mortgage rates and home process are rising. Take control and start paying yourself. Make an investment in your FUTURE.
Coldwell Banker Residential
“Your Hometown Realtor”
Cell: (508) 380-0112
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