Buy Now Thank Us Later – 5 Reasons to Buy Your Home Now
We recently shared a few articles sharing 8 steps toward buying the home of your dreams. You are itching to start your home buying process but may be worried that the timing is off. What are the reasons to buy your home now? Now might feel like one of the most intimidating times to buy a house. All we keep hearing is that it is a seller’s market, and the bidding wars are in full swing. Yes, that’s great for sellers that are often getting well above asking, but why does that mean YOU, on the opposite end of that stick, should buy now?
1031 Exchange still exists
What is the 1031 exchange and why should you care? The 1031 that gets its name from the IRS code Section 1031 is a swap of one investment property for another with deferred capital gains taxes. It must be done with like-kind properties, but there’s no limit to how many times or how frequently you can do these exchanges. In some cases, it can even be extended to a former primary residence or swapping vacation homes. The benefit of 1031 is that you can make a profit on each swap, while avoiding tax until you sell for cash many years later at a lower long-term capital gains rate.
What does this mean for you? If you currently have a rental and you have been considering buying something bigger and better, you can make the upgrade while holding off on paying the taxes on the profit from the sale until you sell that new property. If you’re an investor you can go from owning a single-family home to apartment buildings that may have felt beyond reach before.
So the reasons to buy your home now? There’s talk that the tax code might change soon, and these investments could become more costly.
Inventory is up
One way that a seller’s market benefits buyers is that more people are putting their houses on the market. During many periods there just hasn’t been enough inventory because the people who owned your dream home were staying put! COVID-19 brought about more work from home options that cut the ‘geographic strings.’ Homeowners now have the freedom to sell their beloved homes and seek out homes in cities with a lower cost of living. More choices allow you the flexibility to be picky about your finishes and features and stick closer to your ‘must haves’ list.
Ownership benefits YOU
Renting has its time and place in our life, but when we are ready to take control of our financial portfolio, we can build our own wealth instead of our landlords. Rising rent prices will be a thing of the past as you benefit from home appreciation with a locked monthly payment.
Time to take root
If you’ve found that you now live somewhere you love and plan to stay…it’s time to plant some roots. Renting is unpredictable at best, with rising rents and the control completely in the hands of your landlord. In some places it can be difficult even to have simple repairs done in a timely fashion. When you own your home, you have the security to plant roots and bloom where you’re planted.
Interest rates are awesome!
We’ve saved the best for the last. Right now, interest rates are historically low. Buying a home right now, even if it costs more than you planned, will have you paying less to borrow more. These interest rates are as close to ‘free money’ as you will see with mortgages. Don’t expect this to stay around forever, experts are expecting a hike over the next 12 months. If you want your money to stay in YOUR pocket, now is the time to buy.
Now that you know the reason that you should buy now and the steps you need to take to buy a house, now is the time to hit the pavement and start shopping. If you’re looking to purchase a home in the Anchorage, Eagle River, Wasilla and the Mat-Su Valley we are ready to help!
