Summertime is often thought of as the time when many people move due to a change in jobs or to get settled before school starts for children. Whether you’re looking to move across town or across the country, buying a house is a smart investment. Here are 4 reasons why you should buy a home this summer.
1. Home Prices are Heading Up
Home prices have been low for a long time and many homebuyers have received low-interest rates, but all indications by the Home Price Index state that home prices will be rising soon. The index states that in the last 12 months the price has risen by 5.9 percent and it is expected to increase in the next year by 5.3 percent.
Over 100 housing market analysts and investment strategists were surveyed and agree that home prices are on the way up and the time to buy is now. By purchasing this summer, you can take advantage of the low home prices before they go up any higher.
2. Interest Rates on the Rise
Interest rates have been under 4% percent for quite a while. Mortgage experts are all in agreement that rates are not going to be sustainable at that level much longer. They are predicting that the interest rates will begin to rise within the next year. Each time the interest rate goes up, it can increase your monthly mortgage cost or extend the length of your mortgage.
It is expected that the interest rate could rise a full percentage point within the next 12 months which can raise your monthly mortgage by several hundred dollars, increasing the overall mortgage by thousands. You can save a great deal of money by locking in your interest rate while it is still low.
3. Get More Benefits for your Monthly Payment
You pay for your monthly housing one way or another. If you don’t already have a monthly mortgage you’re probably paying rent each month. When you’re paying rent, you are paying someone else mortgage and they’re reaping the benefits of property ownership with you’re money.
When you purchase a home, you get the advantages of owning the property along with any tax advantages and benefits. By purchasing a home, you can build equity each time you make a mortgage payment along with gaining the benefit of any increase in property values. By buying a home this summer, you can get a better rate than waiting until the rate goes up and possibly makes you ineligible to qualify for a home mortgage.
4. Time to Change your Life
You’ve been talking about buying a home for quite a while, but have always kept putting it off, waiting for a better time or the right circumstances. In the meantime, you keep paying rent month after month and having nothing to show for it. Yes, it gives you a place to live, but you have to abide by the owner’s rules and conditions. Any changes in the property have to be approved by them and the payments you make provides the owner with more equity.
If you have ever wanted to purchase a home, this summer is the time to do it. By purchasing your home this summer, you can begin gaining equity and tax advantage of the tax benefits for this year. You will also have the pride of home ownership, knowing your money is going to help you and improve your lifestyle. When you purchase a home this summer, you decide any changes made to the property to fit your needs and you take control of your life.
Realtor Bruce Champion serves Placerville, Somerset, Eldorado Hills and the surrounding areas for the purchase of a home and the sale of their current home.