If you are thinking of buying your first home, there are several important reasons why you should try to complete that purchase before the end of the year.
- Tax Breaks: Buying a home comes with several forms of tax benefits, one of the most favorable is the ability to deduct interest paid on your home loan.
- Another immediate benefit is that with this new mortgage interest payment deduction, you may be able to reduce the amount of money withheld from your income for federal income tax. This may result in a higher take-home paycheck each month.
- Some closing costs and property taxes are also tax deductible. It’s always a good idea to consult with a tax professional to determine how these deductions could affect your bottom line.
- Less Competition: Home sales tend to slow down towards the end of the year for a variety of reasons. People get caught up in the new school year activities and then, of course, the holidays. Also even in California, the weather can be a factor.
- These market distractions can reduce the number of competing bids for choice properties, and put you in a stronger negotiating position, especially if you have been pre-approved by your lender.
- Low-interest rates: Low-interest rates: Interest rates are still at historical lows. However, an improving economy means rate increases are on the way. Experts predict a slow rise in interest rates, but even an extra 1/2 point can make a significant difference in monthly payments and the lifetime cost of a loan.
- Low Down Payment Options: For many years, 20% has been considered the magic number for a mortgage down payment anything less and your options where very limited.
- Now there are a great variety of low and even NO down payment options. Companies such as www.SP3realty.com provide buyers with access to both government and private sector Down Payment Assistance and Grant programs.
- These programs fit best with people that want to buy a home, work hard and earn money, have at least OK credit, but don’t have a big down payment to work with.
- These programs also work for people that used to own property and got hit hard by the recession. After many years of healing both psychologically and financially, they are now ready to get back in the game.
- No or low down payment options and government grants can also make sense for people that may have enough money for a small down payment but would prefer to keep that money for other uses. These could be things like buying furniture, remodeling, or just having a cushion for the things that just happen in life.
If not now, when?
A slower end of year real estate market could be just the right speed to get you into your new home. Now maybe the perfect time to take advantage of an environment that combines four significant areas that can work in your favor: historically low mortgage rates, reduced home buyer competition, the tax benefits of homeownership and many low and no down payment options.
Yes, the American Dream IS Within Your Reach!
Company Name: SP3 Realty
Contact Person: Seth Phillips
Email: [email protected]
Phone: +1 2137844447
Address:770 S. Grand Ave. #5158
City: Los Angeles
Country: United States