Times are certainly different right now, and one question that I am often asked as a real estate professional is whether or not it’s the right time to buy a home. This question is especially on the minds of people right now, given the uncertainty that COVID-19 has caused. But in thinking about my answer, I do believe the answer is a resounding, “Yes!”
There are a lot of reasons why buyers should take advantage of this current real estate market, there’s no better time than the present! Let me walk you through my reasons.
Achieving The American Dream
The ultimate American Dream is homeownership. Owning a home conveys a number of economic benefits, such as the ability to accumulate wealth and access credit by building home equity, reduce housing costs through the mortgage interest deduction, and gain long-term savings over the cost of renting. And there is really nothing better than being able to call something YOURS. The comfort of your own home is one of the best feelings in the world.
Appreciation
If you’re going to be in your home for some time, there’s historical data that proves that over time your home will appreciate in value. This appreciation allows you to build equity in your home and leverage that equity by making draws if you’re in need of cash flow. This is often a better financial decision than tapping into a 401k or other investment accounts.
Historically Low-Interest Rates
Did you know that interest rates have fallen to a 60-year low? This means that buyers can get more house for their money right now. Also, because more money is being paid toward the loan principal, you can build equity a lot faster. The minute rates go up, your affordability goes down.
Tax Write-Offs
One of the most significant advantages of buying real estate is the tax write-offs for mortgage interest.
Less Competition
Right now is a great time to buy because the competition is much lower than usual. Sure, inventory is down too, but with less competition from other buyers, it’s a great time to find your dream home.
Contingent Offers
A contingent offer is when you need to sell your home to buy a new one. Now is a great time to move up to a larger house by making a contingent offer. Many sellers are finding themselves without offers right now, so they may be more willing to entertain a contingent offer than they would in a traditional market.
Excellent Investment Opportunities
Investors have been hit hard with the economic downturn, but many are looking to real estate to diversify their assets. That’s because real estate investments tend to be more consistent than the stock market, for example. Investors might look at homeownership for themselves, or purchasing a property as a rental to create another revenue stream.
If you would like to talk more about the current market or about potentially purchasing a property right now, I would love to speak with you!