If you are in the market for a new home or your first home, now is the time buy. Prices in the housing market has dropped 34% since 2006. Though prices may continue to drop further that isn’t expected to last long, and by then your dream home may get snatched up. Now that the economy is on the rise, more people find themselves able to purchase a home and get out from under their rentals or leases. If you have been waiting for the right time to get into the real estate market and go shopping, wait no longer!
Purchasing a home is much more cost efficient in the long run. For example, instead of paying rent each month you can pay mortgage and earn equity at the same time. With today’s housing market a lot of people are finding that a mortgage on a new home is as much as what they were paying in rent to a landlord. Buying a home is an investment, and one which is much less risky than playing the stock market.
Interest rates on mortgage loans will increase as the economy continues to rise. This will affect the whole housing market. The economy also plays a large role in rental rates as well. Rental rates have increased over the past few years, even through the economic slump. Signs show that these rental rates will only continue to increase. Keep that in mind as you look for a home.
Purchasing a home allows you to lock in a long term rate with your mortgage provider, I doubt the owners of most apartment complexes could offer the same benefit.Take advantage of the low interest rates in the current market, combine that with the low prices and the investment opportunity is a no-brainer, especially for first time home buyers.
There is a lot of speculation from experts on this subject; some say to buy now and some say to wait. If you are a first time home buyer with a full time job and a pre-approved mortgage you have a lot of leverage in the current real estate market. New home development is on the rise, however many experts say that deals are better found in the established home sector where current home owners are looking to sell. Homes for sale in established neighborhoods may be a safer bet than to speculate on a new home construction in a different part of town.
These tips are specifically for first time home buyers looking to get out of their rental and into a home they can call their own. To get a good idea of where you stand you can use one of many online calculators to find out how much a monthly mortgage would cost, then simply compare this amount with what you are paying in rent and offset for equity and taxes.
Use your current rental rate as a benchmark and always consult a professional Realtor for advise or when you are ready to buy your new home. Also keep in mind that many times new home owners receive various tax and credit breaks which might help you out even more as you search for your first dream home.