Regardless of whether you’re a renter thinking about purchasing your first home or a homeowner considering purchasing an income or vacation property to enjoy, here are four reasons why it’s a good time to invest in real estate right now.
1. Interest Rates
As of today, the 30 year fixed rate mortgage rate average is at 3.87% - around historic lows which means this is a fantastic opportunity. The cost of borrowing someone else’s money to fund the dream of homeownership has rarely been cheaper.
2. Tax Benefits
Most U.S. homeowners can deduct the cost of their annual mortgage interest and real estate property taxes from their annual taxable income, thus reducing their tax liability.
Prices are not likely to decrease anytime soon due to the steady and growing economy. Therefore, between low interest rates and today’s prices, buying real estate a few months from now will likely not be as affordable as it is right now.
4. Forced Savings
When you invest in a home, a portion of that monthly payment goes towards your principle, meaning with each payment your net worth increases. Between appreciation and paying down the debt, your equity rises year after year.
Have any other reasons to add to this list? Comment below and let us know!