When Is It Right to Buy?

Figuring out when it makes sense to buy a home and what you can afford are big questions. If you’re currently renting and unsure whether or not it’s time to make the move into ownership, here are some important things to consider:

  1. RENTAL PRICES ARE SKYROCKETING. Because of rising rent prices and more competition for rental properties, the cost of renting has risen to nearly 30% of the average income in some markets. The percentage of your income needed to afford the median mortgage payment is only 15.3%-- nearly half the cost of renting!*
  2. REAL ESTATE REMAINS A GREAT INVESTMENT. Looking back at history, home values have risen around 4% annually.** Even if you buy a home in an area where home values do not rise as quickly, as long as your home maintains its value, you can still build equity by continuing to pay your mortgage. (The value of house remains the same but the amount you owe decreases, which equals equity.)
  3. UNCLE SAM REWARDS OWNERSHIP. The interest you pay on your mortgage as well as your property taxes are tax deductible. Let’s quantify. For example, if you purchase a new home for $150,000 at a 4.5% interest rate, you could save over $2,500 in the first year.***
  4. LANDLORDS, SERIOUSLY? It happens all the time. You’re inspired to spruce up the place up with a fresh coat of bright, chartreuse paint but the landlord gives you “The Scowl”? Owning your home gives you the freedom to decorate and remodel as you see fit.

Above all the financial benefits, homeownership provides most people with a unique sense of pride that you really can’t put a price on. Not only are you buying a home, you are buying into a community of future friends, neighbors, and potential playmates for your kids and pets.

Take the next step:

The best way to determine when to buy is to speak to an experienced loan officer that can explore options with you based on your circumstance—GET STARTED here.

Other useful tools

• Check out our rent vs buy calculator to see how much you might save

• Check out how much can you afford calculator to get an idea of your price range

 

 

*http://www.tucsonhomesandlots.com/cost-renting-vs-buying/

**http://www.fhfa.gov/AboutUs/Reports/ReportDocuments/HPI%203Q%202014.pdf

***http://www.bankrate.com/calculators/mortgages/loan-tax-deduction-calculator.aspx