Now is the time to buy the home of your dreams! You’ve rented, saved your money, and done research on where you want to live. With the visioning, saving and prep work out of the way, this is the year to make your home owning dreams come true. While some skeptics might advise waiting, we offer our top 5 reasons to buy a home now below.
Although interest rates are higher than they’ve been for the past few years, no one can predict the future. Timing the market may be tempting, but waiting may not be the greatest idea. There’s always a chance you could miss out on your desired property, and get left behind.
To increase your chances of getting into your dream home sooner rather than later, here are some tips from our expert Adirondack Premier Properties staff:
Adirondack Dreams – 5 Reasons To Buy A Home Now
1. Happiness & Freedom
The most life changing of the 5 reasons to buy a home now is the happiness and freedom that owning a home brings. You can let go of worrying about rent increases or feeling frustrated by limitations on what changes or improvements you can or can’t make to the property. Also, you can avoid the inconveniences and privacy intrusions that can come with sharing a building with other tenants.
When you own your home, everything about your living situation can feel more peaceful and free. You can become your own designer, painting walls whatever color you want or hanging as many pictures as you like without worrying about breaking landlords’ rules. You may be able to enjoy being outside more by finally having space and permission to plant a garden. Owning your own home can make it easier to enjoy everything the Adirondacks has to offer.
2. Stable Housing Cost
When inflation goes up, so does the cost of living. Rent and utilities generally go up incrementally over time under normal circumstances and these rates can climb even higher when the economy slows. Having a stable mortgage and variable utility bills can make life much easier as you create your budget month to month. While some unexpected costs may arise around your home (surprise repairs, appliance replacement, etc.), having a more stable housing cost with mortgage vs. rent can help you avoid getting behind on bills.
3. Appreciating Investment
Not all investments are created equal. Real estate is an appreciating investment and is always in demand, so the value of your investment always has the potential to increase. While the real estate market evolves and has its own ebbs and flows, there are always opportunities to make money from your property. This could be from renting your property or just natural appreciation from real estate values increasing over time.
4. Opportunity To Build Equity
As you pay off your property’s mortgage, you build equity in your property. One of the most important of the reasons to buy a home now is to give your equity a longer chance to build over time. Your home equity becomes part of your net worth, and can also create additional borrowing opportunities if you are eligible for an equity loan. Some homeowners choose to borrow against their equity to make improvements to their property, thus increasing the value of the home.
5. Tax Advantages
When owning a home, you may receive additional tax advantages. These advantages include Mortgage Point Deduction, Mortgage Interest Deduction, Real Estate Taxes Deduction, Home Office Deduction, and Moving Expenses Subtraction.
- Mortgage Point Deduction – These are normally paid out to the lender at closing to reduce your interest rate. Mortgage interest is deductible so this means that the points would be deductible also.
- Mortgage Interest Deduction – Taxpayers may be able to deduct the interest paid on qualified mortgages secured by a first or second home on up to $750,000 of mortgage debt (up to $375,000 if married filing separately) in 2023. This includes first and second mortgages, home equity loans and refinanced mortgages.
- Real Estate Taxes Deduction – Deducting real estate taxes imposed on your property can also lower your tax bill. These taxes must have been paid at settlement, closing or to a taxing account (including an escrow account) during the year.
- Home Office Deduction – If you use part of your home regularly or exclusively for business purposes, you may be able to deduct part of the operating expenses and depreciation of your home.
- Moving Expenses Subtraction – If you move to a new home because of a principal workplace, you may be able to deduct your moving expenses.
*6. Bonus Reason – Market Has Settled
The massive shifts and market craziness caused by the COVID-19 pandemic has finally settled in the real estate business. Home prices have come back down and are currently much closer to what we saw pre-pandemic. General competition between buyers has also slowed down as well. While certain neighborhoods and areas in the Adirondacks will still have some stiff competition, being prepared will give you the leg up to buy the home of your dreams.
Buying a home is an exciting venture and one that requires a lot of thought and preparation. If you have been looking, but are unsure if now is the right time, we hope our 5 reasons to buy a home now will give you peace of mind and confidence in your decision to start the buying process. Our agents are always available to show properties or answer your questions. Contact us today!