Find out where you should be putting your money
It’s been nearly a decade since the housing market crash. And while certain remnants linger, real estate is currently undergoing somewhat of a rebirth. In most places around the country – including South Florida – there has almost never been a better time to buy, and many people are taking advantage. Still, millennials seem to be the one demographic that remains hesitant to get their feet wet in the market.
If you’re a millennial (born between 1980 and 2000, roughly), you are part of the nation’s largest living generation – representing over 25 percent of the population. And as you settle in to adulthood, you may be looking for or are already calling some place your own. But like many of your peers, you’re probably still renting. These five reasons may convince you that it’s finally time to buy.
Low interest rates
Right now, interest rates in America are at a shocking low. For most of 2016, they have remained under 4 percent for a 30-year fixed mortgage. This means that if you bought a home for $250K with an interest rate of 4 percent, your mortgage payment would be about $720 each month! Probably a little less than you’re paying right now on rent, right?
Rents are only going up
While interest rates remain steady, the same can’t be said about rental prices. In fact, renters have come to see up to a 15 percent yearly increase in recent times. If you’ve been a tenant for a while, surely you know this firsthand. Unless you’re able to sign a long-term lease, you could be subjected to frequent increases that are at the mercy of your landlord and the state of the market. However, with a fixed mortgage, you know exactly what you’ll be paying every month for years to come.
Goodbye 20 percent down payment
It used to be that buyers were expected to put a 20 percent down payment on a new property. Now, starting rates are much lower. Through the Federal Housing Administration, for example, first-time home buyers can snag a new place with as little as a 3.5 percent down payment! So for that $250K home you have your eye on, you’ll only need to put down a mere $8,750.
A long-term investment
It may be a cliché to say that owning a home is your investment while renting funds someone else’s investment – but that doesn’t make it any less true. Real estate values are going up. If you bought a home tomorrow, chances are it’ll be worth more than you paid by the end of the year.
Sure, it may be convenient to call your landlord when the garbage disposal stops working, but you’re paying a high price for that convenience (and many other limitations). With your own home there are endless possibilities. How often have you wanted to hang a picture or paint a wall, only to realize that your landlord wouldn’t approve? Owning a home allows you the freedom of doing to it what you please.
If you’re tired of renting and are interested in becoming a homeowner, contact Tim Singer & Associates. We have a ton of excellent properties in the Ft. Lauderdale area, and we’ll help you find one that matches your budget and lifestyle!