Renting is not a good deal right now.
Demand for rentals has increased over the last few years due to foreclosures and less existing renters making the decision to buy. Also their has been less new construction so supply has not kept up. Rents are also projected to increase 5% over the next 12 months, with certain markets such as Fort Lauderdale, Fl., Fort Worth, TX, Washington, D.C., and Seattle expected to see higher increases.
Mortgages are inexpensive.
You can currently get a 30-year loan for around 3.99%. These are the lowest rates on record. Even If inflation picks up, you won't see these mortgage rates again in your lifetime. And if we get deflation, and rates fall further, you can refi.
You'll save on taxes.
You can deduct the mortgage interest & Property taxes from your income taxes. You'll only get the income tax break if you itemize your deductions, and many people may be better off taking the standard deduction instead. The breaks are more valuable the more you earn, and the bigger your mortgage. But many people will find that these tax breaks mean owning costs them less, often a lot less, than renting.
You can make the house your home as you own it.
You can change the kitchen or master bedroom to exactly how u want it. This makes the difference between a house and making a house your home.
You'll get a better home in most cases.
if you want the best home in the best neighborhood, you're better off buying.
It offers some inflation protection.
Studies, suggest that over the long-term housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young and raising a family and thinking about the next 30 or 40 years. In the recent past, inflation-protected government bonds, or TIPS, offered an easier form of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.
Less competition.
Right now there are less qualified buyers which makes it less likely you will find yourself in a bidding war. It also means you can negotiate more effectively with eager sellers. Wait to dive in and you could find yourself in a more crowded pool of buyers.
It's forced savings.
If you can rent an apartment for $1,000 month instead of buying one for $1,200 a month, renting may make sense. But will you save that $200 for your future? Part of your mortgage payment that goes to principal repayment isn't a cost. You're just paying yourself by building equity. As a forced monthly saving, it's a good discipline.
There is a lot to choose from.
The National Association of Realtors puts the current inventory at around 4 million homes. That's below last year's peak, but well above typical levels, and enough for about a year's worth of sales. More keeping coming onto the market, too, as the banks slowly unload their inventory of unsold properties. That means great choice, as well as great prices.
Sooner or later, the market will clear.
Demand and supply will meet. The housing excess will work itself out. Many of the homes will be bought, and the excess won't have any long-term impact on housing supply in your town.
This blog post is provided to you by Your Frisco Realtor® of NickWaltonRealtor.com
Providing Real Estate services for the cites of Frisco, Plano, McKinney, Allen, Little Elm, Prospre, Celina & North Dallas.
Nick Walton, REALTOR®, GRI, e-PRO
Mi Casa Es Su Casa International Properties
Global Reach - Local Knowledge
Cell / TXT 469-556-2393
Broker: JP & Associates REALTORS®
6136 Frisco Square Blvd suite 400,
Frisco, TX 75034
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