4 Reason Why You Should Buy Today

    First time home buyers, Investment properties, or empty nesters all have the same concern, it is a sellers market, so why should I buy?

    My friends at Guild Mortgage gave me some good talking points.

    1. Prices Will Continue to Rise – The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report projects appreciation in home values over the next five years to be between 11.8% (most pessimistic) and 26.7% (most optimistic). The bottom in home prices has come and gone. Home values will continue to appreciate for years. Waiting no longer makes sense.

    2. Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year mortgage have started to inch up, most experts predict that they will begin to rise even more over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac & the National Association of Realtors are in unison projecting that rates will be up approximately three-quarters of a percentage point over the next 12 months. An increase in rates will impact YOUR monthly mortgage payment. Your housing expense will be more a year from now if a mortgage is necessary to purchase your next home.

    3. As a paper from the Joint Center for Housing Studies at Harvard University explains:“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

    If you’re paying to rent, why not pay to own. This is a great answer for the cold feet we find with first time home-buyers. Investors see this as an opportunity.

    4. There are substantial tax benefits to owning. Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.

    Trackback from your site.

    Leave a Reply