As we near the end of 2015, many home buyers are scrambling to find the right home. There are many reasons purchasing a home makes sense, and additionally so before the end of the year. Although the time is running out, it is still not too late to enjoy the benefits. Here are some of the reasons you may want to consider.
1/ Sellers may be Motivated to accept a lower bid in order to meet their end-of-the-year goal and enjoy tax savings on their next home.
2/ Tax Benefits–If you close by December 31, there are several deductions you can take: mortgage interest, property taxes, points on the loan and interest costs which are significant the early years of paying off a loan when you are paying more interest. It’s important to speak to a tax expert to fully understand these benefits.
3/ New Builder incentives can be at their highest–Many builders increase their perks to meet their quotas and close out the year. This could be substantial from paid closing costs to dream kitchens and other goodies.
4/ Building your financial future–over the years, real estate investment has been a great way to build financial wealth. With the downturn in the market in 2006, when many people lost their homes and fortunes in the stock market, there was an overall fear in purchasing a home, but the entire economic system was put to a test, not just the real estate market. Stocks fell, economists feared the worse–and people scrambled to hang on.
Now, as we see the market rise and continue to rise, we are once again reminded that over the years, real estate investment (though not 100% guaranteed the same as many other investments) is a great way to build your wealth. Today, people across the nation are building their wealth by investing in purchasing properties.
If you rent, you are not going to appreciate any benefit from this, granted you need a place to live, but at the end of your lease, you do not get any benefits back on your hard earned and spent money. But by purchasing a home, you have the opportunity to gain equity–if the home prices continue to rise, you can come out ahead when it is time to sell, and eventually have money for retirement or other financial goals. And remember, as the value of your home rises, so does the rate of appreciation.
Always speak to a real estate professional when planning to purchase a home. After 26 years of helping buyers into homes, I love the process, the gains, and helping people realize their dreams of home ownership. I am available anytime to be your personal real estate professional!