The idea of buying a home right now might seem awkward to some people due to market volatility. But if you’ve got good credit and reliable income, it’s actually an excellent time to catch falling home prices. Here are key reasons why you should consider buying now rather than later.
1. Home Values Tend to Rise over Time
Real estate valuations move in cycles, but generally, buying a home is an excellent investment over many years. Home prices have risen by an average of over 6 percent in the past few decades. The real estate industry expects this growth rate to continue.
Home prices usually are effected by the local economy, as the employment rate and construction for new housing are big factors. The more a local economy thrives, the better the chances of rising home values.
2. Build Equity
Another great reason for investing in a home is that it’s not just money down the drain. What you put into a property as far as payments becomes part of a growing asset. It’s a reliable way to build your net worth for the future.
3. Modify Your Mortgage When Finances Change
Every monthly mortgage payment you make when buying a home contributes to your growing equity. At some point you may want to borrow against your equity if you need immediate funds.
4. Tax Advantages
When you sell a home after holding it for over a year and the profit surpasses the allowed exclusion, the profit is considered a capital gain. Taxes on capital gains are more favorable to you than how income tax works.
5. Control Pet Ownership
Owning a home gives you much more control of your lifestyle, as many rental spaces don’t allow pets. While there are still insurance issues with dogs to think about, you at least get to decide for yourself who gets to live in your home.
6. Secure an Affordable Interest Rate
The economy has slowed down as the Federal Reserve has been raising interest rates to curb inflation in 2022. The sooner you buy a home, the less you’ll have to pay in interest in the near future. Mortgage rates are expected to increase throughout the next year.
7. Homeownership Is an Accomplishment
Purchasing a home is often thought of as a reward for career achievement. It shows creditors you’re able to take on significant financial responsibility.
8. Markets Favor Buyers Now
Now is the time to find the best home prices, which have cooled off after a hot trend during the pandemic period.
Consult with Brighton Insurance, Inc.
Markets for home buying are fluctuating with opportunities to jump in at low prices compared with where prices are likely headed this decade. Contact us at Brighton Insurance, Inc. for more information on finding the home of your dreams in a buyer-friendly period.