I have been working up numbers for a client of ours so he can stop renting and buy now. This particular client was looking at Oswego townhomes for sale, but I will work up numbers for Oswego homes for sale too. Here are 5 reasons to stop renting and buy a home!
1) It is cheaper! Rents have been rising in Illinois for a few years now. Looking at my clients example, they wanted to purchase a 160k townhome with 3.5% down on a 30 year fixed mortgage. TODAY, that total payment (PITI) would cost roughly 1,260 (including their HOA dues too!). They are renting the exact townhome they want to buy for $1,500 a month TODAY.
Let’s pretend it was a $300,000 single family home with the same terms. Total mortgage payments (PITI) inclusive of HOA dues would be roughly $2,200. That is about the same amount as a local rent payment. If you went conventional with a 5%-20% down-payment, you would fare much better. BUT…
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2) You start building EQUITY! The worst of the housing market is behind us. It is time to Buy Low, Sell High. You build equity on a home as you pay off your mortgage. Home equity is the value you own on your property.It is the current market value less what you owe on the mortgage. Value builds over time as the property appreciates and you pay off your mortgage. You also get…
3) Tax Benefits! There are many tax benefits available to home owners like deducting the interest on your mortgage and property taxes from your income tax. There are also tax benefits in the form of capital gain exclusions when you sell your home. Capital gain exclusions mean that you could qualify to keep up to $500,000 of the profit when you sell your house before you have to pay a dime in taxes to the government. You can also turn your home into an investment property in the future for more tax benefits. But, NOW is the time to buy because…
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4) Mortgage Rates are at historic LOWS! Most buyers missed the boat in late 2012-early 2013, but mortgage rates are still in the 4.5% range. They’ve been rising for the past 9 months or so but they’re still below the average 6%-7% we saw for a long time.
5) Buyer Competition will increase in 2014! Many future buyers were put on the sidelines FOR 3 YEARS after they performed a short sale, foreclosure or filed for bankruptcy. This caused a spike in rentals that we saw. They buyers returned to the real estate market in DROVES in 2013 after waiting their 3 years. The FHA just announced they are reducing that 3 year waiting period to 1 year in August. That will drive MORE buyers, more competition, and price increases in 2014.
When you own a home you have the freedom to paint the walls whatever color you want, put holes in them to hang your favorite pictures, have whatever kind of pet you want and a whole lot more. Call us today or visit www.AyersTeam.com to stop renting and buy now! You will be glad you did!
Rich Ayers is a licensed Real Estate Managing Broker in Illinois. Ayers Realty Group has EXPERIENCED Brokers who specialize in Residential and Investment real estate in Naperville, Oswego, Plainfield and the surrounding suburbs of Chicago. We are the lead real estate contributor on the Oswego Patch and write a monthly real estate column for Inside Oswego magazine. We were also selected as Oswego’s Favorite Realtor by the readers of Glancer Magazine! Visit our website at www.AyersTeam.com or follow us on Facebook or connect on LinkedIN.
