Like a large number of buyers, you may have been searching home listings online for months now,…attempting to figure out when to buy. Buying a property is a major undertaking with several factors to consider. Below is information on reasons to purchase a home in 2014.
Benefits of Renting
When itemizing deductions on a tax return, you may include interest paid on your home loan, property taxes, and in certain circumstances, mortgage insurance. Normally, these tax advantages make buying a property more appealing. When reviewing living expenses, remember to have this factor in your calculations.
Increased Cost to Rent
There are two factors that have led to an increase in rental rates. First, a lot of home owners who lost their properties during the real estate slump resorted to renting. Secondly, listing inventory is low so home buyers have turned to renting until they can purchase. Both of these have added to demand for apartments, resulting in rising rental costs. The gap in renting versus buying is much less as a result.
A Solid Real Estate Market
If you are watching for the market to reach its bottom before taking the leap to purchase a home, it already has! In many regions, home prices are inclining. Now is the best time to buy before prices go up more. As a plus, if the market continues to improve, your equity will appreciate in a short amount of time.
Interest Rates Remain Low
Although home loan rates have gone up during the last year, they are still historically low. They are expected to rise some more over the next 12 months, so it might be best to act before they do. Just a one percent increase could significantly drop your price range.
Additional Mortgage Changes Coming
Changes in the mortgage industry continue. Qualification rules are more stringent, making it harder to qualify. Allowable loan amounts are also decreasing. Further adjustments are planned for the coming months, so it is better to apply for a mortgage now.
Analyzing Reasons To Purchase A Home In 2014
During some markets, it is best to rent versus buy, but it currently is not one of those times. The cost of renting, real estate market conditions, interest rates, and mortgage rules imply that if you intend to purchase a property, it is a good time to do so! When evaluating reasons to purchase a home in 2014, remember that there are many personal aspects of your situation to weigh. The above does not include that. For additional advice, contact any of the Realtors at Maple Leaf Realty.