Some millennials (people born between the early 80s and mid-90s) are hesitant to buy a home today. The slow recovery in the housing market may have them concerned. However, three key factors make this a fantastic time for millennials and other first-time home buyers to build a new home. Hartz Homes is happy to provide the following factors to help in the home-buying decision and is ready to answer any of your questions.
Interest rates are low. Really low! And, these historic rates are helping first-time home buyers afford the home of their dreams. Average interest rates for a 30-year fixed mortgage have been under 4% for most of 2016. To check the current rate, contact the preferred lender.
These rates won’t stay this low forever. They are sensitive to economic conditions and can change quickly. While there is no indication they will suddenly jump up substantially, even a slight increase can boost the monthly payment and hinder the buyer’s ability to afford the desired home.
Down payments are manageable. It’s true that lenders are having to look more closely at borrowers today than a few years ago. But, that does not mean you have to have a 20% down payment. For example, the Federal Housing Administration (FHA) offers loans to first-time home buyers with down payments as low as 3.5%.
Note: To ensure that the financing process goes smoothly, buyers should consider prequalifying for a mortgage and have a financing commitment to help them select the appropriate home.
Higher rental costs make homeownership very attractive. Rental vacancy rates have dropped to their lowest point since 1985, pushing rental costs up 3.5% per year according to Harvard University’s Joint Center for housing Studies.
What’s more, after paying rent, you have nothing to show for it. Owning a home, on the other hand, helps you build wealth while combating rising rents. It’s a great way to accumulate personal financial assets over the long term. As the housing market continues to recover, home values have started to grow again. In fact, nationally they are up 6.3% in the first quarter of 2016 compared to the same quarter in 2015. (National Association of Home Builders). And remember, rent is not usually tax-deductible like mortgage interest.
As an added financial bonus, when you build a new home, you benefit from new innovative materials and construction techniques that keep energy costs down. Newly constructed homes are simply more affordable to live in due to energy efficiency.
Please check out these new home communities from Hartz Homes:
Armitage Pointe of Addison, Illinois (Chicago area new home construction)
Bella Vista Townhomes of Bolingbrook, Illinois (Chicago area new home construction)
Heather Glen of New Lenox, Illinois (Chicago area new home construction)
Hibernia of New Lenox, Illinois (Chicago area new home construction)
Leigh Creek of New Lenox, Illinois (Chicago area new home construction)
Manchester Cove of Mokena, Illinois (Chicago area new home construction)
Marquis Pointe of Montgomery, Illinois (Chicago area new home construction)
Marywood Meadows of Montgomery, Illinois (Chicago area new home construction)
Nantucket Lakes of New Lenox, Illinois (Chicago area new home construction)
Oliviabrook of Oakbrook Terrace, Illinois (Chicago area new home construction)
Park West of Manteno, Illinois (Chicago area new home construction)
Playa Vista of Plainfield, Illinois (Chicago area new home construction)
Sky Harbor of New Lenox, Illinois (Chicago area new home construction)
Whisper Creek of Mokena, Illinois (Chicago area new home construction)
Hartz Homes has new home communities in:
Addison, Illinois (Chicago area new home construction)
Bolingbrook, Illinois (Chicago area new home construction)
Lockport, Illinois (Chicago area new home construction)
New Lenox (Chicago area new home construction)
Manteno, Illinois (Chicago area new home construction)
Mokena, Illinois (Chicago area new home construction)
Montgomery, Illinois (Chicago area new home construction)
Plainfield, Illinois (Chicago area new home construction)
Oakbrook Terrace (Chicago area new home construction)