In our line of work, we hear people wonder about the wisdom of entering the housing market. After all; alarmist financial pundits decry high interest rates and low home inventory. But we feel confident assuring home buyers that now is the perfect time to purchase a house or condo in the San Gabriel Valley, Inland Empire, LA Basin or Orange County. Why? Because even with the slight bump in interest rates, most are still priced far lower than they once were. And the only constant in everyone’s life is change. Based on that, a certain percentage of homes are available in virtually every market.
Interests Rates Remain Relatively Low
The average home loan rate circa 2000 was 7 percent. That’s two to three points higher than today’s average. And as far as inventory goes, things change. Life moves. People either outgrow large homes, decide to downsize or have to relocate. So, as long as you retain a great real estate agent to help the search, and a reputable escrow company to manage the funds, 2019 is a great time to buy a home. In fact, home ownership is still a smart move, despite hype to the contrary.
Benefits of Home Ownership
When the housing bubble popped in 2008, millions of Americans lost their homes. The myriad and complicated reasons were effectively summarized in laymen’s terms in the 2015 movie, The Big Short. But if you don’t have time to watch the film, suffice it to say that, on the heels of the global financial disaster, people grew gun-shy about applying and paying for mortgage loans. As a result, home sales suffered as consumers shifted monies from mortgage payments to leases. The rental market grew increasingly competitive.
Few Rentals & Excess Competition
- Limited rental inventory persists across the country.
- Dozens of people routinely show up to tour available rental properties.
- Competitive bidding resembles the once congested home offer process.
- If you have to show up early and produce proof of substantial income and recovered FICO scores, why not apply that effort to home purchase instead of a lease?
Why You Should Buy a Home
- Tax benefit
One of the most substantial tax deductions is interest and taxes paid on home loans.
- Ability to change
If you rent a house with a mustard color interior, you either won’t be allowed to change it to fit your own style or would be spending money to upgrade someone else’s home even if the property manager grants permission.
- Remains the smartest consumer investment
Despite misgivings, Americans still believe one of the easiest ways to build wealth is to invest in property. And the smartest place to put those dollars is in putting a roof over your own head.
- Effectively controls rent
While rents will continue to rise, you can lock in a mortgage payment today that could last for 30 years.
About Exact Escrow in La Verne, California
If you plan to buy a home, please consider hiring Exact Escrow to manage escrow funds. An escrow is a financial arrangement where a third party holds and regulates payment of the funds required for two parties involved in a given transaction. It helps make transactions more secure by keeping the payment in a secure account, which is released only after terms of an agreement are met, as overseen by the escrow company. Call today to speak directly to an escrow officer (909) 542-0162.