People at Orange County CA who are renting or leasing homes are also often considering to buy.
Here are “7 top reasons to buy a home now”.
First: High Rents. Rents are high and will go higher each year. Unlike rent, your fixed rate mortgage payments won’t go up over time. Your property taxes and insurance payments will increase. However, in California we have Proposition 13, which limits the rates at which property taxes can be increased. If you are careful to find a good home insurance policy, that might help you with good rates.
Second: Low interest rates. Mortgage interest rates are at historic lows now. But the Federal Reserve is expected to increase these rates before the end of the year. As rates go up from 4.125 percent (where they are today) to 4.3 percent and beyond, monthly payments on new mortgages will go up and purchasing power will decline. Buying now, while you can lock in today’s low rates, can save you lots of money over the lifetime of the loan.
Third: Equity ownership. Rent payments are money spent and gone, but mortgage payments are investments. With each house payment you build equity in your home. As the interest portion of the payment declines, the principal part of the payment increases and your equity ownership goes up with that.
Fourth: Favorable return on investment. During temporary housing market ups and downs, real estate has experienced long-term, stable growth in value. The average appreciation rate for median-priced homes in the Golden State has been around four percent each year for the past 15 years. So you can invest and pay 4 percent annually and puts a roof over your head at the same time.
Fifth: Flexibility. The home you buy is yours. You can decorate it to suit your tastes and remodel it for your When you decide to upsize or downsize, you can sell your home and use the proceeds as a down payment on a new replacement home.
Sixth: Wealth accumulation. An article in the New York Times stated that home ownership is the best way for people who have not inherited wealth to build it and that building equity in a home can be a ready-made savings plan. And when you sell your home in California, up to $250,000 (and up to $500k if married and filing jointly) in capital gains may be excluded from federal income tax liability.
Seventh: Long-term stability. Home ownership has a significant positive impact on net worth, educational attainment, civic participation, and quality of life. Buying, owning, and staying put allows you and your family make things solid for your lives, establish lasting friendships, and help realize the American Dream of home ownership.
By Harrison K. Long. Source of information is an article by Sherri Butterfield at the Orange County CA Association of REALTORs®.