Are you tired of working so hard just to build your landlord’s equity instead of your own? If you are considering moving from renting to buying a home, you are positioned to take advantage of several benefits. Here are 5 reasons why you should buy a home in 2017.
Not only is it difficult to find a rental property in Colorado, the cost to rent is skyrocketing. As a renter, you are often times paying more than what a mortgage would cost you. All the while you are helping someone else build equity. Just think if you have rented for 10 years paying $1000 a month, you could have had $120,000 put toward a mortgage instead of having nothing to show for it. 2017 is a great time to start leveraging your money and investing in your own future.
Right now, interest rates are at historic lows. But, as we close out the year, they are starting to rise. With rates hovering around 4%, you can afford more house for less money. To see the true impact of small fluctuations, take a home that costs $300,000 with a 5% down payment for example. A 4.0% interest rate and a 4.5% interest rate will have a difference of $30,000 over a 30 year loan period. Trying to predict which way rates will go is impossible, but as interest rates climb buyer purchasing power decreases and the home you were able to afford may become out of reach.
It is no surprise knowing you need a down payment is a huge deterrent when deciding to buying a home. Most believe you have to have at least 20% down. There are options to put down substantially less. It is important to know that putting down less does require you pay mortgage insurance, but some loans enable you to drop it once you have the 20% equity. In this market, that might happen faster than you would think and it can create a large return on your investment.
If you buy a home there are several tax breaks you could get. This isn't just for your 2017 return either. Some tax benefits can be applied for the term of your mortgage. Consult with your tax expert to see if you can write off things like closing costs, mortgage insurance and property taxes.
Living on your terms
Even though you pay thousands in rent, you still can’t make it yours. Most landlords will not allow you to paint, update or upgrade much of anything. As a homeowner, you have that freedom to do what you want to a home. It is yours to enjoy!
You probably have even more reasons to buy that are important to you. If one of your personal 2017 goals includes buying a home, reach out to the agents at COListings. They can meet with you to explore your next steps toward homeownership.