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Buying is a home is a personal decision that it is influenced by several other deciding factors. Finding the right home isn’t just about finding the right house to suit your needs, it’s also about being a part of a neighborhood and community, having stability in life and shelter.
Purchasing a home might seem like a daunting task as the nation is suffering from a multitude of issues that stem from the COVID19 pandemic. Homebuyers also face mortgage discrimination, predatory lending, a speculative land market, and the effects of novel coronavirus on the economy, but despite all these issues, there are advantages to buying a home in 2020. The real estate experts at AK Premier Real Estate Services provided us with 4 unique advantages to buying a home in 2020 that will have you considering the current market to be a boon for buying your next home:
- Competition isn’t High
Though buyers are still out there scavenging for the perfect home, they are dwindling. According to a recent survey conducted by the real estate brokerage Redfin, the overall traffic of buyers was down by 25% this year. The dynamics and buying behaviors of the market have entirely changed. There is still a demand for homes, but the availability of homes balances the demand, and the power dynamic isn’t that much disproportionate.
As the competition is low and the buying power of people has decreased drastically since the outbreak of novel coronavirus, this is the best time to buy your dream home. You don’t have to compete with a lot of other buyers and thus can buy a house at the lowest rates.
- A Great Investment
Real estate is considered as an excellent investment along with some other options like stocks, gold, bonds, savings, etc. You can build equity and can enjoy the pleasure of having your own house as a form of significant future investment for your family. An increase of roughly 5.1% is seen in the number of people buying homes and investing in for the sake of having equity.
This means, average homeowners, over the past year, have gained approximately $5,000 in equity. In addition to this, prices of property and homes are likely to increase again once the situation gets better. Thus, if you want to make some good profit, then think about investing in a home this year.
- Low Mortgage Interest Rates
Interest rates have fallen over the years since November 2018 and are more likely to go below 2.5% by the end of 2020. A low mortgage rate means you need to pay a lesser down payment, and a little can go a long way. While purchasing a home with minimal mortgage interest rate will also lead to a lesser monthly payment, and is a great opportunity to buy a well-constructed house for the money that you have in hand.
- Increase in Rent Prices
Some renters haven’t purchased a home yet just because they are not ready to take on the obligation of the mortgage. However, the reality is, unless you are living with your parents rent-free, you are paying a mortgage to the landlord. As rental prices have increased significantly amid coronavirus, the amount of rent and installment of the lease will be approximately the same. Thus, you should think about buying your own home if your landlord has increased the rent this year, and at the end of the day, you will be the owner of the home.
Bottom Line
Buying a home could lead to substantial savings, and you will be more likely to save a lot for you and your family in the long-term. Make a decision and reach out to the real estate professional to buy your own home as soon as possible.
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