Tips When House Hunting.
As with anything in life, start by putting together a solid plan of action to make your home purchase successful. Don’t fail to plan, before going shopping. Otherwise, you’re planning to fail.
Create a list of items that are requirements and try your best to stick to it. If you’re married or have a vested partner, sit down together, and plan accordingly. Take time to review both of your must-haves and/or deal-breakers. Two heads are always better than one. You’d be asking for trouble if the other person isn’t considered in an important decision, like a home purchase.
It’s not all about the home purchase. The neighborhood and its surroundings matter too. After all, you’re investing in the community where the home will be located. The old adage, “Real Estate is all about location, location, location,” is relevant for a reason. The adage matters for safety reasons, schools for your kiddos, and whether or not your potential home is located close to conveniences that are important to you or other home buyers, once you’re ready to sell in the future.
Renting vs. Buying.
As a general rule of thumb, real estate oftentimes doubles in value every ten years, all other things being equal. In prime areas or markets with high demand, real estate can increase in value at a quicker pace. That being said, purchasing a home today allows home buyers the opportunity to benefit from property value increases (appreciation), while allowing the buyer to relatively lock-in principal & interest payments over the course of their loan (typically 15 or 30 years). With interest rates being at historically low levels, now is an ideal time for new home buyers to benefit from low mortgage payments, which would make the buyer’s principal & interest payments relatively low.
Alternatively, as a renter, the tenant is at the mercy of the market for rent prices, which continue to increase or trend upwards with each passing year. In a market flooded with other renters, a tenant can consistently expect to encounter higher and higher rents, year over year.
Another huge benefit of buying a home is the ability to deduct mortgage interest from the home buyer’s tax return each year.
The Bottom Line.
Essentially, the benefits of purchasing a home can far outweigh renting in the long run. Take the necessary steps to discuss your financing options with a mortgage professional, along with engaging a Refuge Fine Homes (RFH) agent to represent your interests.
Click here for RFH guidance in buying your new home today!