If you’re like most first-time homebuyers, you’ve probably heard every Tom, Dick, and Harry advise you to do so. But you might still be unsure whether getting a house is the best course of action.
Reservations are a common occurrence during the purchasing process. Perhaps you’ve been waiting impatiently for the “perfect time” to buy. But you need to Have better knowledge before going in without knowing anything.
Read on to learn about the reasons to buy a home now.
In the Past, Home Values Have Risen over Time
Housing values have constantly increased, even though real estate values fluctuate in cycles. Over the past 20 years, home prices have increased by an average of 6.7% a year, which is projected to continue.
Investing in a home now makes a secure, long-term investment that will probably expand over time.
Create a Nest Egg and Make Yourself Safe
Every payment you make each month will contribute a portion of the principal balance of your loan, creating available equity (capital). That can then be withdrawn to pay for purchasing a bigger house, home improvements using a home equity line of credit, or retirement expenses.
Mortgage Modification Increases Equity
Your obligation decreases each month as a portion of your monthly payment is applied to the principal balance of your loan.
Your first payment will have the least amount toward the principal, and your last payment will have the most. With each payment, you accumulate more significant equity the longer you own the property.
Favorable Tax Treatment
If you hold your home for more than a year and sell it for a profit that exceeds the permitted exclusion, that profit will be regarded as capital gains.
Compared to income tax, capital gains are given favorable tax treatment. This implies that the taxable part will be substantially smaller than you might anticipate, even if your profit exceeds the exclusion.
Possess as Many Pets as You Like
Do you enjoy owning pets but wish you could have Rottweiler instead of Fluffy the hamster?
When you own a home, you can have as many pets as you like without anyone imposing size restrictions or forbidding animals from your residence.
Affordable Interest Rates
An accommodative policy interest rate continues to be warranted since rates will remain low given that the economy is expected to develop slower than the present inflation rate.
This is good news because it reduces the probability that lending rates will rise and means you can anticipate stable rates during the construction of your new house.
By purchasing your own house, you can invest in your future and provide stability and security for your family and yourself.
A Buyer’s Market Exists
There’s no need to put up with wrong things. The market for new homes has been severely cooled by higher mortgage rates and the provincial sales tax, which led to a 67.4% decline in building permits in the first quarter of 2019.
With too much demand and insufficient supply, this reduction may lead to a market supply imbalance, increasing housing prices.
Before making your first purchase, it is advisable to make sure you are prepared for the various obligations that come with home ownership. However, as you can see, it offers a lot of advantages. When thinking about purchasing your first house, be sure to balance the advantages and disadvantages.
Brighton Escrow, Inc. Can Provide You with the Best Home Insurance!
Are you planning to buy a house and have proper homeowners insurance with it? If yes, then contact us here at Brighton Escrow, Inc. Our team of experts will also answer all questions you have regarding your home insurance needs.