November 9, 2012
The Federal Reserve is doing everything in its power to get you to Federal Reserve House Buying. While there’s no guarantee that next year home prices will escape another dip, the Fed is anticipating that the overall economy will be lifted by a stronger housing market.
For people who can afford to buy a home and expect to stay in it for at least a decade, here are five compelling reasons to Reasons to buy a home.
- Buying is generally cheaper than renting. Mortgage rates continue to be at historic lows. In almost every major housing market in the U.S., given the current prices and tax benefits, owning a home is more cost effective than renting.
- The mortgage interest deduction will most likely continue to exist. The cap on the amount that can be deducted may be lowered, but probably not enough to affect middle-class homebuyers.
- Home prices are very cheap and do not appear to be dropping further. Since the recession ended, prices have recovered only a bit. The good news however, is that they aren’t getting any worse.
- Historically, economic recovery boosts housing prices. As the recovery picks up momentum, it will eventually have a rebound that will most likely yield price increases.
- Eventual inflation can increase return on your investment. As the recovery proceeds and spending picks up, the increases in the amount of outstanding money could begin to create an atmosphere for substantial inflation which means your home could be worth more over time.
While employment growth remains critical for stimulating the economy and increasing housing demand, those who can qualify for purchasing a home at this time are positioned to enjoy a return on their investment.
At The Premier Group in Woodstock, GA, our experience ranges from consistently managing and closing shortsale and distressed properties to marketing and selling luxury homes. If you would like to sell your home or purchase a home, don’t hesitate to contact The Premier Group. We are dedicated to being the specialists you can turn to for all of your real estate needs.