There are many reasons to buy a home, and here are a few reasons for buying now:
1. To lock in historically low interest rates. Even though rates have climbed a bit in recent months, they remain extremely low by historical standards. Rates were in the 10%+ range for most of the 1980s, in the 8% range for much of the 1990s, and over 6% prior to the 2008 meltdown. The Fed is likely to push rates up quickly with at least two additional rate changes expected for 2017 alone.
2. As an inflation hedge. There is much talk about inflation coming back to the forefront if the economy heats up again. And real estate, as a hard asset, is an excellent inflation hedge. People forget about this b/c inflation has not been a problem for many years, but many people bought homes in the 1970s solely as an inflation hedge.
3. To stabilize housing costs. A mortgage payment with a low 30 year fixed rate will never change, but rents almost always increase. Also, in CA at least, property taxes remain relatively constant thanks to Prop 13.
4. Tax Benefits. All the of interest and property taxes associated with owning a home are tax deductible. For buyers in high tax brackets, this benefit is significant.
5. To start building equity. We have numerous clients in our database with over $1 million in equity in their homes. Very few of them were ever wealthy people, but they instead bought homes when they were young and just simply made their payments and house-hopped over time.
6. It feels great to own. Whether doing home improvements, building memories, building equity, or just enjoying life, it feels good to own.
Jay Voorhees or Heejin Kim Voorhees at (925) 855-4491
Real Estate Broker, CA Bureau of Real Estate, BRE# 01524255, NMLS# 335646