If you are planning to buy a home, 2016 is as good as it can get. Yes, the housing market is not in a very stable recovery but statistics are pointing to gradual recovery. There are numerous reasons why this is the year, you should take the plunge.
Here are top 5 reasons that should put smile on faces of home buyers in 2016.
Low Mortgage Rates
The Federal Reserve took the decision to raise interest rates for the first time in 7 years. This does not have immediate impact on the mortgage rates since they are directly linked to the bond markets. But in the near future, say 2-3 years, the fed will keep raising rates. It means only one thing for the mortgages, they are going to go up. In the near future, 2016 will be called as the perfect year to lock in good rates.
Recent data pertaining to jobs, unemployment, non-farm payrolls increase, retail statistics etc. all point to improving economy. In fact, these piles of data prompted fed to raise rates. A steady improvement in such data will only point to one thing – economic upside. More money in the pockets of Americans will lead to a real estate boom owing to higher purchasing power. Naturally, more home buyers will flock to buy home at low mortgage rates. Those who act fast will definitely get good deals.
Rising Home Values
Real estate prices have increased by as much as 4.8% in the last year. Homes are often overlooked as a lucrative investment option. Most people just see them as a secure roof over their family. However, they can also contribute to your financial security. The rise in real estate values means that more equity is parked in your home. This gradual rise can then be cashed in to sponsor other facets of life such as home improvements, additions, renovations, child education etc. Get your home evaluated or know the potential rise in the property you wish to invest.
Buying Vs. Renting
Renting is a great tool for a beginner investor. It helps you build a good credit score, save on high mortgages and be financially prudent. But most growing families need a space of their own which tilts the needle in the direction of home ownership.
Another important factor to consider is the rising rents in metropolitan areas. In 2016, rents are going to increase by 3% – 5%. It can seriously blur the lines between renting and buying a home. With good mortgage rates, a monthly mortgage payment means that you not only pay rent but also build equity in your new home with rising home prices. Unlike your landlord, the actual homeowner realizes this capital gain.
Refuge for seniors
When you buy a home, you can look towards making an investment for your senior years. With grey hairs, comes rising health care costs. So, a good equity build up in your home can help in the later years. Seniors can downgrade to smaller homes once the brood moves out.
There are many signs pointing that 2016 is the year to make the shift from renting to home ownership. Make the most out of this fast running opportunity.
Revive Property Group