- Low-interest rates, stimulated by the Federal Reserve, have made homeownership more affordable amid the pandemic.
- Home values continue to rise despite the pandemic, making housing a good investment opportunity.
- Homeownership offers significant tax benefits, including deductions for mortgage interest payments and property taxes.
- Owning a home gives control over the living environment, providing security and personalization freedom.
- A home safeguards against inflation, contributing to long-term financial stability and growth.
The pandemic has affected every aspect of our lives, including the real estate industry. But even with the uncertainty brought about by the pandemic, purchasing a house is still a wise investment choice. Here’s what you need to know about homes in this post-pandemic world, reasons to invest in a home today, and how to get started with your investment.
Residential Homes in The U.S.
The housing inventory in the U.S. has reached 1.5 million. Even with the pandemic, home values are still increasing in most areas. The median listing price of homes is currently $320,000, up 8 percent from last year. There are many reasons you should buy a home in the country. Here are some of them:
1. Low-Interest Rates
Low-interest rates are one of the biggest reasons you should buy a house now. The Federal Reserve has reduced the interest rates to stimulate the economy, which makes it easier for potential homeowners to secure a mortgage. This means lower monthly payments and more affordability for buyers. Experts predict that the low-interest rates will continue through 2021, so it’s a great time to buy.
2. Home Values Are On the Rise
Home values have remained steady despite the pandemic, with some areas even experiencing an increase. If you buy a house now, you could benefit from appreciating home values. This means that your house will likely increase in value over the years, giving you a good return on your investment. This trend is expected to continue, making it a great time to buy a house.
3. Tax Benefits
Owning a house comes with various tax advantages. You can deduct mortgage interest payments, property taxes, and other costs related to homeownership. These tax benefits can be significant savings and part of your long-term financial plan.
4. Control Over Your Living Environment
Many of us have discovered the importance of a comfortable and safe home during the pandemic. When you own a house, you have control over your living environment. You can decorate how you like, renovate, and make changes that suit your lifestyle. Owning a house gives you a sense of security and the freedom to create a space you love.
5. Protection Against Inflation
Finally, owning a home is a great way to protect against inflation. As the cost of living increases over time, so does the value of your property. This means your home can hedge against inflation, ensuring your net worth stays stable. Over time, your house may exceed inflation, providing a significant financial advantage.
How to Get Started With Your Investment
You can take several steps to ensure your home investment is successful. Here are four ways you can get started with your investment.
Look For The Right Property
You must find a property that aligns with your budget and goals. You can start by looking for houses for sale in neighborhoods that suit your needs, researching the local market, and comparing housing prices in different areas. When selecting a home, consider factors like schools, public transportation, and amenities.
Get Pre-Approved For A Mortgage
Once you’ve identified the right property, you should get pre-approved for a mortgage. This will give you an idea of what kind of loan terms and interest rates you can expect. It also reassures sellers that you’re serious about buying the house.
Make A Reasonable Offer
Once your offer is accepted, it’s essential to ensure it’s reasonable. You don’t want to overpay for a house and cause yourself financial strain in the future. Consider factors like local market conditions, how long the home has been on the market and any special features that could add value.
Inspect The Property
Finally, inspecting the property before closing on the sale is essential. This will help ensure there are no significant problems with the house that could cause you problems in the future. A qualified home inspector can help you identify potential issues and determine if they are worth addressing before closing.
With low-interest rates, increasing home values, tax benefits, control over your living environment, and protection against inflation, there are plenty of reasons why investing in a house is a smart move in today’s post-pandemic world. By following these steps, you can ensure your home investment is successful and reap the rewards for years.
