SOMETIMES PROCRASTINATION PAYS OFF Home Buyers: ACT FAST!!
By John Adams, for Fox5 News ATLANTA, AUG 09 2016 © 2016 All Rights Reserved
Occasionally, procrastination pays off. Now may be one of those times…
If you’ve been sitting on the fence waiting for the right time to buy your next home, your gamble has paid off! Here’s why:
- HOME PRICES ARE STILL ATTRACTIVE
Yes, resale home prices in metro Atlanta are up about twenty percent over the last couple years, but we still have not fully recovered from the crash. Compared to renting and compared to buying in other parts of the country, home prices remain attractive.
2. INTEREST RATES ARE AMAZINGLY LOW
Here’s the key: your INTEREST COSTS are typically the largest overall expense of owning a home, and anything you can do to lower that cost will have a big payoff.
Most of us who watch the market fully expected home loan rates to be higher by now. But for whatever reason, this has been the slowest economic recovery since the depression. Just about the only thing keeping our economy afloat for the past several years has been the federal reserve printing LOW COST MONEY and pushing it onto the market.
THAT FACT ALONE makes this a great time to buy a house.
You can lock in a 30 year fixed rate home loan today at just blow 3.5%. But the real bargain is a 15 year fixed rate loan at 2.75%. Yes, the monthly payments are higher, but the low rate and fast payback slashes your overall interest expense to the bone.
3. TAX BENEFITS ARE REMARKABLE
As if the first two factors weren’t enough to push you over the edge, the tax benefits of owning versus renting are just as good as ever, and they’ve always been good!
As an example, if you buy an ugly house in a nice area, and move in. On weekends, you paint, clean-up, improve, and finish out every square inch of the property. Two years later, you sell for a nice fat profit, maybe fifty thousand dollars profit. If that happens, every penny of profit is totally tax free.
- LONG TERM OUTLOOK FOR REAL ESTATE IS STRONG
Last time I checked, there were 324 million people living in this great nation of ours, and most of them prefer to live indoors. That’s not gonna change!
CONCLUSION: The time is right to explore your options for home ownership. This combination of factors makes ownership particularly attractive, and locking in a long term fixed rate mortgage below three percent is an absolute steal. Anyone who buys a house today will probably be very happy with their decision five or ten years from today.
About the author:
Atlanta native John Adams is an award-winning freelance columnist for the Atlanta Journal-Constitution. He is a real estate broker, a property manager, an investor, and a lifelong entrepreneur. His website is Money99.com