These days, record numbers are forsaking the notion of buying homes in favor of renting an apartment. Many are even abandoning homes they were buying as the market continues to look grim, leaving many homeowners upside down in their mortgages. But this exodus provides those who wish to own a home (and who don’t mind paying for property taxes and homeowners insurance) with an unprecedented opportunity.
The price of housing is as low as it is ever likely to get. Even if we were to see another hard recession, it is unlikely that the price of housing will go much lower than it is right now. Additionally, interest rates for mortgages are also at an all time low, giving home buyers a once in a lifetime opportunity to buy a home at a rock bottom price, with the added benefit of paying a very low interest rate.
This is especially attractive for those who are in a position to qualify for a shorter term mortgage. Those who are able to take out 15 year fixed mortgages are in a position to have a significant amount of positive equity in their homes without paying out a ton in mortgage interest. Home buyers who opt for a 15 year mortgage will generally find themselves well ahead of the curve by the fifth or sixth year of their mortgages.
Of course, if you decide to buy a home, you need to consider more than just your mortgage payment. There are several other expenses associated with owning a home, each of which should be added into your calculations when you are figuring out your living expenses. These include:
- Property taxes
- Homeowners insurance
- Utility bills
- Maintenance
- Home repairs
While none of these things should scare the average person away from buying a home, they are all things which need to be budgeted for. Home buyers should also be aware that, while they can currently deduct the interest on their mortgages from their income taxes, there is some speculation that this deduction could be taken away in the near future.
So, if you’re in a position to take advantage of the low prices and interest rates in the housing market today, do so. If you’ve ever wanted to be a homeowner, this is likely the best chance you’re ever going to get.
