10 Reasons Why Now is a Good Time to Buy a House

Phoenix Home

  1. You can get a good deal.  While there are some parts of the metro area seeing shortages of inventory, more properties are posted to the Multiple Listing Service daily.  We have seen real recovery of values over the past two years and many homeowners are now back to a positive equity position and qualified to sell.  We are again hearing families talking about “right sizing” either up or down to fit their current needs.
  2. Mortgages are cheap.  Well, cheap may be an over statement but they are still near record lows based on historical data.  According to BankRate.com as of this article, the rate for a 30 year fixed conventional mortgage remains below 4.25%.  As recently as two years ago these same borrower’s rates exceeded 5% for even the best applicants.  Many lenders are now offering programs with zero down payment requirements.  If your budget can afford a higher payment, there are many remarkable programs for 15 year amortizations in stead of the typical 30 year schedules.
  3. You’ll save on taxes.  You can deduct the mortgage interest from you income taxes.  And you’ll get a tax break on capital gains when you sell.  Sure, you’ll need to do the math.  You’ll only get the income tax break if you itemize your deductions.  the breaks are more valuable the more you earn, and the bigger your mortgage.  But many people will find that these tax breaks mean owning costs them less than renting.
  4. It’ll be yours.  You can have the kitchen and bathroom you want, or move the walls, or build an extension.  For renters, these types of changes are often impossible.
  5. You’ll get a better home.  In many parts of the Valley, it can be really hard to get a good rental.  Available single family detached rental homes are in short supply and often found in the less favorable communities.  Generally speaking, if you want the best home in the best neighborhood, you’re better off buying.
  6. Owning offers some inflation protection.  No, it’s not perfect.  But studies suggest that over the long term, housing has tended to beat inflation by a couple of percentage points a year.  That’s valuable inflation insurance especially if you’re young and raising a family and thinking about the next 30 or 40 years.
  7. It’s risk capital.  Agreed, your home isn’t the stock market and you shouldn’t view it as the way to get rich.  We have seen the equity markets significantly improve over the last few years and as we expect the overall economy to follow, it is natural for the real estate market to see similar gains.
  8. It’s forced savings.  There are many online tools such as New York Times, Is It Better to Rent or Buy where you can model your personal situation to include the effects of investing excess cash in saving verses making your mortgage payment each month.  The purchase affordability index is currently favoring most potential home buyers.
  9. There are a lot to choose from.  As of the writing of this article, there are over 20,000 listings in the Phoenix area MLS for single family detached homes.  In many parts of the country including Phoenix, builders are out developing new communities with large subdivisions popping up everywhere.
  10. Sooner, the market will return to normal.  Today’s favorable conditions will not last forever.  Interest rates will continue to rise, inventories will shrink, and builders will run out of places to build.  Will you be the one remaining on the fence, frozen in indecision?  Call our team today and speak to a real estate professional, we’ll steer you towards a better understand how to enjoy the benefits of home ownership.

 

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The opinions expressed by the owners and agents of Peak Realty Advisors, LLC are published for educational and informational purposes only, and are not intended as specific investment advice or as a substitute for professional legal or tax advice. Please consult an appropriate legal or tax professional for your specific investment needs or concerns.

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