You've heard it before, that NOW is the time to buy. For an everyday purchase you can pass by these sales pitches for another time when the deal will still be around. However, in the case of real estate you may not be able to afford to pass by the current market conditions. How many times do you make a home purchase in your lifetime? 1, 2, maybe 3 if you are lucky??!! Well if that is the case, why would you pass up the best opportunity to make the most significant purchase in your lifetime??!!
Here are the top 5 reasons why NOW is the time to build a new home.
1. Interest Rates
Interest are LOW, LOW, LOW right now. It looks like the local banks are averaging 3.75% on fixed 30 year mortgage! They are so low, this is like robbing the bank without the facemasks!
To think that just 6 years ago, we had rates that were topping 6.6%. If we saw those rates today we would be laughing at the banks. Take this for example: On the purchase of a $310,000 home, at today's rates you would be looking at a mortgage payment of about $1500 per month. In 2006, that same home would cost you about $1900 per month. Since 2006 the average principal and interest has fallen from $1063 to $645!! And that is not even the best part. In today's real estate market you can get so much more house for $310k. The competition out there is intense. New homebuilders, resale markets, and the large amount of short sales and foreclosures are flooding the market, driving down the price of homes. These facts, alone, offer the best reason why today is the best time to buy. We can confidently say that a buyer's market like this may never be seen again in our lifetimes!
2. Build a Home, Build Your Equity
From day 1 in your new home you will begin to earn yourself some equity. With rates as low as they are today and home prices at the most affordable level in years, monthly rent and monthly mortgages can be very comparable. While rates are the lowest they have been in years, rental costs keep on climbing. Quicken Loans has a an interesting story about rental cost vs. new home purchases. With comparable monthly costs to rent vs. own, equity is a VERY strong reason to consider buying vs. renting!
3. TAX BENEFITS!
Yes, it is true, there are actually tax benefits out there waiting to be had! Owning a home is the best tax break around! For most people, buying a home allows you to deduct mortgage interests, real estate taxes, and itemize your deductions. For example since most of your mortgage payment the first few years is primarily interest, on a $1200 monthly mortgage payment you can deduct about $1080 per month. Therefore giving you additional deductions of $13000 to $20000 by owning a home!
4. It's All Yours!
Building your home can be one of the most personal things you can ever do. Imagine all those things on your wish list in your current apartment or home. You can have all those things when you build. And best of all, they will be new, unused and untouched by anyone else! When making the biggest purchase an investment in your lifetime, why settle or compromise on something you may not like? Purchasing a newly built home can be very competitive with resale homes on the market today. Don't pass up the opportunity to see what a new home builder can do for you!
5. Community
We think Community is one of the single best reasons to buy a new home. Your community affects a large part of your life. Investing in a home is not only a monetary investment, but a time investment as well. The neighbors and surrounding community are people who you see every day and possible count on daily as well. These relationships grow and a community bond is formed. All of the neighbors must have something in common if they all chose the same area to live. Whether it be work, or school district, or proximity to shopping, there are always common similarities between you neighbors. In our new communities, we try to create a lifestyle for the new homeowners. Whether it be parks, walking trails, Homeowner Associations, or even clubhouses, we try to create an environment to embrace the community bond. Relationships and connections with neighbors can carry on for a lifetime and should be cherished.
There are many, many, more reasons to own a new home and even more to BUILD NEW! Now is certainly a great time to be considering purchasing a new home. These market conditions will only be around for so long. The Michaels Group offers a number of different communities throughout the Capital Region and Lake George area. See below for some of our featured communities. Each community has a fully decorated Model Home to show all of the new and exciting options that can be done with each home:
The Meadows of Mill Hill ~ Luxury Townhomes in the heart of Guilderland
Sheldon Hills of Halfmoon ~ Maintenance Free Single Family and Townhomes
Woodscape II ~ Conventional Single Family or Maintenance Free Single Family Homes in Moreau
