buyer

Sitting on the sidelines?

Anne Frewen|March 25, 2024
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Reading the headlines daily can be confusing when one article claims you should wait it out and the next reports it’s time to jump in.  Here are a few questions to ask yourself to help determine if NOW is the right time to get serious about looking to buy a piece of property.

 

 

  1. Are you looking to stay there more than five years? Buying a house is often considered a sound long-term investment. Real estate historically appreciates over time, providing homeowners with potential financial gains. Homeowners that bought three years ago have seen that appreciation as have homeowners you bought one year ago.  By jumping back into the housing market, you position yourself to benefit from this appreciation, potentially building equity over the years.  The monthly dips and rises will not mean much in 5 to 10 years’ time.

 

  1. How comfortable is your current situation? Do you have too much room or too little? Do you need more outdoor space or maybe you’re in a large house and want less maintenance. Not only does owning your own home give you more control over remodeling and improvements but it can give you the amount of space you’ve desired.  If you find yourself thinking about these needs daily, it’s time to consider ramping up your search.

 

  1. If you rent, are you concerned with rent going up? Buying a house can provide stability in housing costs, especially if you opt for a fixed-rate mortgage. Unlike renting, where landlords can raise the rent at their discretion, a fixed-rate mortgage locks in your monthly housing payment for the duration of the loan term. This predictability can offer peace of mind and make budgeting easier over time.

 

  1. Do you have great credit, or have you improved it recently? Yes, mortgage rates are higher than they were a few years ago but they haven’t budged much in the past 6 months and most economists do not anticipate them getting much better in the next 6 months or more. A great credit score will help you secure the lowest mortgage rate and give you the best options. Also, remember a common adage used in the mortgage world:  “marry the house and date the rate.”  Even if more rates go down in a year or two, you can refinance just like millions of homeowners did in 2020 and 2021.

 

  1. It’s tax time! Have you thought about how home buying could help your tax burden next year? Homeownership often comes with tax advantages. Mortgage interest and property tax payments are typically tax-deductible for many homeowners, potentially reducing your overall tax burden. Additionally, if you sell your primary residence at a profit, you may be eligible to exclude a portion of the capital gains from taxation under certain conditions, providing further financial benefits.

 

Any questions?  We are here to help and if it’s beyond our realm we can introduce you to a seasoned, local lender that will have your best interests in mind.  In general, think twice about waiting for that dip in the market or mortgage rates.  No one has a crystal ball to time the market so it really worth continuing to put your life and possibly your happiness on hold?

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