Why Buy a New Home Now?

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Posted: March 5, 2015 - Homebuyer's Blog

The question really is, “Why NOT buy a home now?” Is there something about your home that you don’t like? Do you need more space? Do you need or want to move to a different neighborhood or area? Don’t wait – buy now.

Here are a few facts that will ring true about buying a home right now. It’s like anything else: If you wait too long, opportunity will have passed you by and you will be looking in the rear view mirror asking yourself why you didn’t act when you had the chance.

 

  1. Interest rates are still at all-time historical lows. But if you feel they will go down further, why wait? You can refinance as soon as rates go down. You can also buy down your rate or even get a deal from your builder or mortgage broker to buy down your interest rate for a period of time. The economy is solid right now, and unemployment is finally down. If your current financial picture is stable, there is no reason to wait.

 

  1. Home prices will inevitably go up. This is a reality. Prices of materials and land increase all the time, so homebuilders often have no choice but to raise prices. This also works to your advantage. If you buy now, you will earn equity in your home, which will benefit your overall wealth portfolio, your credit rating and your ability to obtain credit cards, car loans or home equity loans in the future. Plus, when you go to sell the home, the less you paid, the more you earn on resale.

 

  1. Investing in a new home can still be the best investment in town. Typically homes earn 5% or more each year on appreciation. New homes earn more equity faster than existing homes. On a $300,000 new home purchase, in five short years you can have earned $83,000 or more. How much money would you have to invest in a high-risk stock to reap this kind of dividend? A new home is a low-risk investment that gives back in so many ways every day, meaning your new home will give you the best return possible.

For more insights into weighing your financial options, visit our home financing section!