The right time to buy a house is now! With rates continuing to rise and the California housing inventory that shrinks each day, the time to get into the market is now. Here are some reasons why buyers should consider buying now to avoid the cost of waiting.
- Rates have officially hit a 7-year high.
According to this CNBC Report, “interest rates are surging to their highest levels in seven years.” It looks like this trend is going to continue going strong, based on continued strong economic reports and announcements by the Federal Reserve. Despite the recent rate hikes, the demand for housing is still strong and growing. Property values continue to appreciate at a surprisingly fast rate. If buyers are planning to get into the housing market, sooner is better.
- You may have to pay the “cost of waiting” in 2019.
In a National Real Estate Post video, Barry Habib uses a $500,000 Orange County home purchase to exemplify the “cost of waiting” to buy. At current appreciation rates, waiting even six months can cost a buyer an additional $200 per month. Waiting over a year can cost over $400.
- Stabilize your housing costs
A mortgage payment with a low 30-year fixed rate will never change, but rents will almost always increase. In California, property taxes remain relatively constant because of Proposition 13.
- Reap the tax benefits of homeownership!
All the interest and property taxes associated with owning a home are tax deductible. For buyers in higher tax brackets, this is a significant benefit.
- Start building equity
JVM has numerous clients in its database with over $1 million in equity in their homes. Very few of them were ever wealthy people to start, but instead, they bought homes when they were young and just simply made their payments and occasionally house-hopped upward over time. As we mentioned earlier, property values will continue to appreciate at a fast rate, adding more equity to your pocket.
- It just feels great to own
Whether doing home improvements, building memories, or building equity – it’s nice to enjoy life in a home you own.
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