If you happen to be planning on buying a home this year, there is a whole lot to celebrate. Here are five good reasons why 2016 is a great time to buy a home.
1. Rent will continue to rise.
Rental rates are skyrocketing. In the last 12 months, 88% of property managers have raised rental prices, and they show no signs of slowing down.
2. Interest rates are historically low.
Even though they may creep up at any moment, they are extremely low right now. A 30-year fixed loan is still hovering around 4%.
3. Home prices are stabilizing.
This is the first time in years this has happened. When home prices stablilize, it restores an even playing field for both buyers and sellers, which is good for everyone.
4. Down payment protection will be available.
If you decide to put less than 20% down on a home, you will be required to pay private mortgage insurance. Right now, you can take out a loan from the Federal Housing Administration, a government mortgage insurer that backs loans with down payments as low as 3%. FHA predicts that a 37% annual premium cut will bring a ton of first-time buyers into the market.
5. Major tax benefits.
Tax laws favor homeowners. You aren’t just buying a place to live when you purchase a home, you are getting a tax break as well. If your home loan is under $1 million, you can deduct all the interest that you are paying on your loan.
If you have any questions for me, give me a call or send me an email. I look forward to hearing from you!