Ready to buy your first house? There are many reasons why now is a perfect time, and they all have to do with interest rates. As one article from the New York Times explains, mortgage rates have been at historic lows for years now.
Consequently, if you wait too long, it will be much more expensive to get a loan on your next purchase! So what’s stopping you?
If you’ve been thinking about it, now might be the time to take that step. Here are the top reasons to buy a house sooner rather than later:
Tax Savings
Houses offer a ton of tax benefits. These include deducting interest from mortgage payments and state and local taxes from your yearly income, as well as decreasing your taxable income if you opt for a shorter loan term.
Increasing Home Prices
It is not just the Sacramento real estate market; the sector as a whole has experienced significant recovery since the housing bubble burst in 2008. Along with the stock market, it is at an all-time high.
House prices are higher than ever, and interest rates are at their lowest in recent history.
You can still get a great deal if you buy your house now, but there are no guarantees that prices won’t continue rising. Many people hope that prices remain stable while the interest rates are low— making this the ideal time to buy.
A Bright Future for Home Prices
Despite some signs of a slowdown, it is still quite clear that the housing market is strengthening. There are already signs of a housing bubble developing, and there have been numerous discussions concerning this.
This can cause a shift in the market, proving profitable for those who have invested wisely. It is also worthwhile to consider the possibility of renting out your house as an investment option.
As rental prices continue to rise, so will future profits from real estate investments.
For those wanting to buy their first home now instead of later, this offers them a unique opportunity. In addition to purchasing a great piece of property at a decent price point, any profit made from rent is a bonus that will only increase over the years.
Low Mortgage Rates
Mortgage rates have not been this low since the last recession. Buying real estate while interest rates are so low gives you early access to sizeable amounts of cash in the future when it will be much harder to obtain.
Even with signs of a housing bubble, getting a mortgage at an affordable rate is still possible. This is something you must take advantage of right now before the market shifts again and interest rates start rising.
If you need some extra cash from your house, now is the perfect opportunity to lock in a great rate. It’s also important to factor in all costs when considering this investment option as they can offer you peace of mind while also providing significant returns on your money.
A Smart Investment
Buying a home is one of the most lucrative investments you can make. Unlike other types of investments, such as stocks or bonds, a house continues to appreciate over time.
While there are other ways to “invest in real estate,” the best way is by actually owning a home. There are many benefits of buying your own house over just investing in real estate, including how it’s not as reliant on the economy.
Houses also create rental income, which is passive income. You can put up another tenant and keep receiving payments month-to-month without spending much time or effort aside from regular maintenance or upkeep when someone moves out.
Are You Ready to Buy a House?
With the housing market in flux, it is no surprise that many people are looking to buy houses. Though you may be excited to find your little slice of heaven, purchasing a home can be stressful and confusing.
Below are the top tips to consider when buying a house to make things easier for you:
Check Your Debt to Income Ratio (DTI)
The debt to income ratio shows how much money goes out in mortgage payments, loans, and bills every month against how much income you have coming in.
It can be a valuable metric to help make financial decisions, but it is often misunderstood. DTI has nothing to do with debt or other types of income other than regular income from employment.
The ratio is calculated by dividing your monthly debt payments (including the mortgage) by your gross monthly income before taxes. It lets you compare how your debt-load and income correspond to others in the same income group.
Banks use it as part of their lending criteria. Still, lenders aren’t the only ones interested in this number— if you’re considering buying a new car or even a house, for that matter, knowing this ratio will help give some idea of what kind of impact those payments could have on your monthly cash flow.
Work With Real Estate Experts
Purchasing a house is probably the most significant investment you’ll ever make at one time. Therefore, Real Estate professionals can help take the stress out of buying your next or first home and give you the direction needed to lock in the best offer.
For instance, in the Sacramento real estate market, a well-qualified realtor can guide you through what could otherwise be a confusing process because they possess extensive knowledge of the housing market in the locality.
Furthermore, professionals who have worked specifically in a particular region can help you narrow your search to homes that fit within your price range and meet all of your other requirements, such as square footage or several bedrooms.
Conduct a Personal Inspection of the House
When purchasing a house, there are plenty of things that could go wrong if not done correctly, like inspections! Since no one knows better than yourself what needs to be inspected, make sure you complete your own assessment as well.
This will provide you with the opportunity to getter a better view of the space and check things in detail compared to your initial visit.
There are many reasons why you should buy a house sooner rather than later. While millennials might consider purchasing a fancy car before a home because they’re not ready to commit to that amount of responsibility, you must understand that owning a house will give you more satisfaction.
Bottom Line
You cannot put a price on happiness, and owning your own home can bring significant benefits for you and your family. Buying your first house is not always an easy decision, but it will be worth the investment in the long run.
If you’re still stuck on what type of property to buy, contact us today, and we’ll provide expert Sacramento real estate market insights and give you tips that will help you find your perfect home!
