When deciding if this year is the right time for you to purchase a home there are four personal signs that signal now’s the time to buy.
1. You want to save at tax time
Mortgage interest and property tax payments are typically deductible.If you itemize deductions at the 25% tax bracket) regardless of whether you own or rent, buying is 44% cheaper.Without itemizing, meaning you’re just taking the standard deduction, buying is still 35% cheaper than renting.
2. You’re planning to stay local for a while
Staying put longer lowers the relative cost of owning.The combined cost of buying and then selling a home can easily total more than 10% of the home’s value.Staying put longer means, in effect, spreading those costs over more years.Buying is 44% cheaper than renting if you stay put for 7 years, 37% for 5 years and 20% for 3 years.
3. You want a low mortgage rate
Higher mortgage rates mean a higher cost of owning, but prices today are low enough relative to rents that buying would beat renting even if mortgage rates rose two full points.While today, buying is 44% cheaper than renting with a 3.5% mortgage, buying would be 39% cheaper than renting at 4.5% and still 33% cheaper with a rate of 5.5%.
4. You can’t let your dream home slip away
March 2016 data from the National Association of Realtors showed housing inventory dropped almost 20% in the past year. That means the likelihood of finding your dream home is quickly on the decline and the best buying opportunities might be slipping away. Buying now is a great move for those who want to make sure they get a serious say in which home they’ll spend the next 30 years in and don’t end up ch
Brought to you buy Melissa Christopher, owner of The Best NJ Realtor Blog, bringing you New Jersey Real Estate tips and advice for buying and selling an NJ home. Working as an Ocean County NJ Realtor providing service throughout the state. Located in Lacey NJ & Manahawkin NJ