I was asked recently as I turned a friend who was going to rent into a homeowner, Sergio, what are the top reasons to buy a home still in 2016?
Here's the answer:
1. Interest rates are still at record lows. It’s a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.
2. Renting has increased significantly. According to the 2015 Rent.com Rental Market Report, 88% of property managers raised their rent in the past 12 months, and another hike is predicted for late 2016.
3. Home prices, for the majority have stabilized. Prices are holding and value is increasing for home owners in most areas, especial in a heated market like Phoenix – no pun intended.
4. Down payments don’t need to break the bank. One of the most significant obstacles that prevents renters from becoming homeowners is pulling together a down payment. There are many programs out there right now that allow for a lower amount making this much more feasible.
5. You can reap major tax breaks. Unless your home loan is more than $1 million, you can deduct all the monthly interest you’re paying on that loan. Homeowners may also deduct certain home-related expenses and property taxes.
How can I help you out in 2016??
Evolve Bank & Trust