The housing market began showing a return to health in 2013, but in 2014 economists said that 2016 would likely see those values peak. After 2016 it is expected that the market should remain steady for a few years, although a housing shortage in any given area could easily result in over-valued homes in a buyer-saturated market. One must be careful and informed before diving in, but there are perks to it.
If you are currently renting a property and have been considering buying a home in Lake of the Woods, VA, now is a good time; here’s why:
1. In many areas you may still find excellent home prices with a promise of a modest gain over the next year. This will greatly depend on what state/city you are buying in, but there are still some great deals out there to be had. While this may not be the prime time to buy an investment and flip it, it’s a good time to buy a starter home.
2. The biggest reason to buy right now is that the market is stabilizing. You aren’t going to find yourself upside down on your mortgage out of the blue, and if you found yourself in a position where you needed to sell sooner rather than later, you can rest assured that you won’t be losing money on your home.
3. It will curb your spending. When you rent you are paying someone else’s mortgage, of an unknown amount, and each month that rent money more or less goes out the window for you. When you get your own mortgage, you see those payments working for you, and you see your equity grow. It helps you develop better financial goals and allows you to see your money working.
4. It’s good for your soul. Home ownership makes you feel invested in your dwelling and in your neighborhood. When you own a property, you care about how it looks inside and out. You care about your lawn, the curb appeal of your home, and you care about those things in other homes in your community because they all impact each other. Taking care of your own home benefits the whole neighborhood and often can be reflected in a home’s value. Location, location, location, right? So make your neighborhood the location to live.
5. It’s a retirement fund. If you stay in your home until it is paid off, you will be sitting on a good retirement fund. The equity in your home can supplement your retirement plans, and downsizing could help pad your bank account nicely.
6. It’s considered a ‘safe’ investment by banks. Although safe is a relative term, the better term may be ‘low-risk’, but either way mortgages typically see much lower interest rates than revolving credit – such as a credit card – does.
7. Tax breaks. There are tax breaks for homeowners. You can deduct your mortgage interest and you don’t have to claim a capital gain if the value of the home has increased by less than $250 000, which applies to the majority of middle class folks. It’s a good deal.
At The Ostlund Team Realtors, we will work overtime to ensure we serve your real estate needs, please feel free to call us at 540-903-9732.