In 2009, Bloomberg said “If you don’t buy a house now, you’re stupid or broke.” When they said that, rates were at 5%. Today, rates are under 4%. While we wouldn’t go so far as to make such a statement as Bloomberg, we would say that now is most certainly the time to buy a house, whether for personal or investment purposes.
Here are the biggest reasons why:
1. Rates Are Down
Just as we stated before, rates are at an all-time low and they most likely won’t go much lower. With such low rates, you can get a very low monthly mortgage rate that costs less than renting.
2. Rent Is On the Rise
Another reason why your mortgage can be lower than a rental is because rent is rising to new high levels. In fact, over the past five years, the average rent rose 15%, while income of those renters only rose 11%. Since 2009, New York, San Jose, Denver, Seattle, and San Francisco have consistently seen the highest rent increase.
3. It’s Easy to Qualify
While you may not have qualified to buy a home a few years ago, you likely can today. Banks and lenders have loosened the reigns and qualifications have eased up. Even if you don’t have a perfect credit score doesn’t mean you can’t get a great mortgage.
4. Private Mortgage Insurance Fees Have Lowered
When you put less than 20% down on a home, you may have previously been charged a monthly (Private Mortgage Insurance) PMI fee. As of this past January, the government has lowered those rates, meaning you pay less and aren’t as penalized if you can’t afford to put down 20%.
5. Real Estate Continues to Be the Best Investment
Real estate is considered to be the best investment available. It is low risk and you have a chance to make great money if you use it as an investment, or save money if you live in it instead of renting.
These are just some of the many reasons why now is the time to buy a property. If your friends and family need some convincing, share this article with them!