Home Buyers
The Costs Associated With Waiting to Buy a Home
Buying a home is a big decision. Some buyers may play the waiting game when it comes to buying a home for fear that they may buy at the wrong time. There are many financial and emotional choices that come along with buying a home that fully depends on your job security, lifestyle, and commitment to a location. These dependencies are key factors you need to weigh when deciding if now is the right time to buy.
The cost of waiting to buy is defined as the additional funds it would take to buy a home if prices and interest rates were to increase over time. Waiting to buy a home can give you more time to save money, but it could also mean that you will end up paying more in interest. Also, if you are renting, your payments are not building any equity.
Our team at HomeHunt put together some costs related to waiting to buy a home and the benefits of buying in the current market.
Interest Rates
In today’s market, interest rates are at a historic low and many homeowners are taking advantage of these low rates by refinancing. Potential buyers are also taking advantage by starting their home search and making offers. When interest rates are low, this is the time you should start to look for a house. You will notice that during this time, the inventory of houses is much smaller because people are buying. If you are looking to buy a home, contact one of our agents today to start your home hunt!
Home Prices
The first step in buying a home is to start searching for what kind of property you want and deciding on an area you would like to live in. When interest rates are low, homes will sell quickly which eliminates inventory. To avoid missing out on your dream home, start scheduling house tours and making offers if the price is right. With low-interest rates, you may surprise yourself at how much money you can save if you buy right now.
Is Waiting to Buy or Rent Better Than Owning?
Many people are surprised to find that owning a home has a lot of benefits that waiting to buy or rent cannot offer. Here are some reasons why owning a home is a better option:
- Earn money instead of spending it on rent – Housing prices have increased across the United States as well as the cost of rent. Housing prices are expected to grow making home equities go up as well. This means that homeowners will be making money off their property instead of paying rent without any kind of equity.
- Set monthly payment – Once you move into a new home, you will have a set monthly mortgage payment. You will no longer have to worry about landlords or apartment buildings unexpectedly changing your rent.
- Creativity – Unlike most apartments, buying a home lets you do what you want with the space. You have a lot more flexibility and can create an environment that is your own.
Our team at HomeHunt can help educate you on the current mortgage rates and help you determine if you are ready and able to afford a home. Contact us today for more information on how our agents can help you in this exciting journey.