With interest rates at an all-time low at the end of 2020, it’s one of the best times to take the leap and purchase a new home. For many people, renting a home seems to make more sense as it offers greater flexibility in terms of moving, but investment-wise, you’re not doing yourself any favors. Renting an apartment may provide stability and shelter, but in the end, you’re spending money on a piece of property you don’t own, providing little long-term benefits to your finances.
If you have the means to buy, now is the time. The thought of purchasing a home can be overwhelming for some, especially if you’re not entirely committed to living in the area in which you are currently renting, but buying property in a desirable area allows you the flexibility to rent out your home and potentially profit at the same time. If you’re wondering where to buy, do some research on popular destinations and find listings for houses for sale on James Island, SC, or other towns and cities in top spots. Before you start your search for the perfect home, consider the benefits of ditching your rental for a greater investment.
Most people become first-time homeowners because they’re looking for a way to secure their financial future. Renting property does have its advantages, but you are essentially spending a large chunk of money on a property you will never have the opportunity to grow equity from the property. When you buy a home, you receive a number of tax benefits along with the fact you are helping yourself to save money in the form of property investment. Over the course of 20 or 30 years, depending on the type of mortgage you receive and accept, you’ll be spending that money you used to put towards rent into owning your own property you can then turn around and sell for a profit.
First-Time Homeowner Loans Options
Making the choice to stop renting and start buying to own is a long and intimidating process for someone who has never bought property before. But, there are dozens of new and flexible loan options, especially for first-time buyers, to make the experience more affordable and easy. These first-time buyer programs vary by state, but most offer the option to put down a smaller down payment and, in some places, no down payment at all. Although the larger the down payment, the cheaper the mortgage (and quicker you’ll pay it off), the options to put down less money upfront is appealing to younger people with less disposable income. It provides the opportunity to make a stable investment without requiring a great deal of money.
Interest Rates Are Very Low
The housing market has experienced a shortage of available properties in 2020 because of the uncertainty of the pandemic. The properties available are going fast, mostly because interest rates are incredibly low. In fact, the Washington Post reports interests may be at the lowest point since we first started keeping tabs on this statistic in the 1970s. Lower interest rates essentially mean you’re getting a better deal. You can pay your loan off more quickly and you’re paying less in interest over time. With interest rates currently at their lowest, it makes a great deal of sense to take advantage of this moment and look for a property you love.
Increasing Property Values
As property values across the country increase steadily, you can rest assured your investment will provide a return when you decide to resell the property in the future. It’s important to do your research and find an area where the property value is expected to grow even more so. Some areas have leveled off a bit, so if you’re looking to make a big profit, you may want to seek out areas currently being developed and attracting new residents.
Rent Prices Are Getting Higher
The cost of living is steadily rising across the country. Of course, the exact pricing varies based on where you live, but overall, rent prices are trending upward. Renting your apartment or home provides you with a place to stay, but offers no real value outside of the possessions you own within the home. With rent getting more expensive, you’re spending more of your money on a property that will not provide you with any financial gain in the future.
Where Should You Buy?
Deciding on the right area to buy a home is a long process. If you want to buy in the area where you currently live, talk to real estate agents in your area and learn more about the local market. Research online as well to find financial information on specific areas as well as the overall demand of property in that area. Buying a home that has access to both city life and beaches is a great investment, as these are two desirable environments for people to live in. Houses for sale on James Island, SC, offer just that—beautiful beaches and the charming city of Charleston just a few minutes away. This area of South Carolina has been a highly popular area for people to move over the last 10 years, especially those from the North seeking warmer weather, making it a clear choice when it comes to buying a home.
Set Yourself Up for Success
Buying a home can be scary for first-time home buyers, but with so many new loan options available and interest rates at an all-time low, it’s easier and potentially more beneficial to buy now. As property values continue to increase, you’ll be able to profit from the property if and when you decide to sell in the future. Whether you’re looking to live in the home or rent the property out to others, you’ll need to find the right property in a popular area. Charleston, SC, is one of the top destinations right now for travelers and residents looking to relocate. If you like the idea of living close to a charming coastal city right by the beach, check out Dunes West homes for sale and start dreaming about the home of your dreams.