Is now the time to buy property? With interest rates at all time lows, 3% or less which is unbelievable, is now the time to buy your new home?
In general, my view is if you really like the property and can see yourself living there for several years, then the answer is yes!
With interest rates at all time lows, such low rates allow you to qualify to purchase more expensive properties and pay the same monthly rate.
You're not paying rent which is money that could be used to pay down a property.
You can get tax write offs for interest and points paid.
With low rates, every payment goes less to interest and more towards principle. If you're young, you'll be getting pay increases which will make the monthly payment be less of your overall take home.
Homes can be great investments. You put down 10% to 20% and if the property goes up in value, you'll make a significant amount due to leverage.
The disadvantages are at these low rates, you'll never likely be able to lower your monthly payments by refinancing your loan.
If rates do go up, home prices will go down. Over the long term, prices will go up due to inflation. But if you have to sell, you may be under water with your loan and have to sell at a loss.
But ... whatever you decide, please, please, please, get a fixed rate 30 year or 15 year loan (if you can afford the higher payments). Now is NOT the time to get a variable loan!!!
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