Here are some things that you might want to consider before continuing to pay rent or pass on an opportunity to buy your own property:
1) Being a homeowner is still one of the best long-term investments that can be made. Not only does it benefit you in the long run, homeownership adds to the financial well being of all American families by generating wealth.
2) With a loan payment, you are able to keep your payments consistent by locking in the price. A great example of this is comparing paying rent for an apartment or being a homeowner. Through the apartment you have monthly payments and those payments have the chance of increasing over time due to numerous factors. If you are a homeowner, you are able to get a 30-year fixed-rate mortgage where you make monthly payments that are always the same no matter what. In the long term, you would be at a huge advantage to get that fixed-rate mortgage, especially with the low rates being offered today.
3) Homeowners get big advantages from the IRS like tax breaks. You are allowed to deduct things such as your mortgage insurance and mortgage interest and others, within certain limits. With these great tax breaks, your overall payment may end up being close if not below what you are currently paying for rent.
4) Home prices have been on the rise when you look at historical statistics. Of course it is hard to ignore the decline since the peak of home prices in 2007, but this is just the cycle that needs to be worked through. If you go back to 1991, there were 16 years of growth before the 2007 decline. History is bound to repeat itself after the high number of foreclosures and unemployment rates are sorted though.
5) Because social media usually refers to the national housing decline as a whole, you need to remember that this may not be the same for your housing market. Don’t pay attention to the national market, pay attention to your local market. A lot of areas actually saw home appreciation in the last year, which goes against what social media is saying.
6) In a lot of areas, right now it is a buyers market. Because of the steady rise in the number of homes on the market, buyers have a lot to choose from. And because some sellers are having a tough time selling, they might be more open to negotiations with price and closing costs.
7) If you are looking for the perfect time to buy, don’t waste your time. In most cases, there really isn’t a perfect time and you don’t want to end up missing an opportunity while mortgage rates are relatively low.
8) There are still a lot of options for finance available. Each mortgage depends on your current situation, so take some timeto sit down with a lender who is going to explain all the options to you.
We at Remax Advantage Plus and the Twin City Real Estate Team offer free one on one home buying consultation and FREE buyer seminars and no cost. Make sure to contact us if you have any Shakopee Real Estate related questions.