Whether you are buying a house to live in or using it as an investment opportunity for the future, 2017 is the year of the first time buyer thanks to the increase in FHA mortgages and record low interest rates.
In fact not since the home owners loan corporation was founded in 1933 to help first time buyers secure their first property, and keep it, has there been more of a deal to help Americans get on the property ladder.
Here are five reasons you should be considering your first mortgage in 2017.
Image courtesy of the Franklin Society
- Prices remain stable – now is the time to get the best deal on your first property as prices remain stable and there is no sign of an imminent drop. In fact if anything we could continue you to see price growth which means that you could pick up a deal that increases in value in your first year. This is the perfect opportunity for investment even if you aren’t ready to settle down to homeownership just yet.
- Sellers will negotiate – there are a lot of motivated sellers on the market that just want to move on. This means you have the chance to negotiate on price like never before thus getting more bricks for your buck.
- More loan options – banks and lenders are extending their mortgage offers for qualifying first time buyers so you have lots more options when it comes to actually borrowing money and getting the best deal.
- Low interest rates – with interest rates remaining low now is good time to take advantage of mortgage savings and deals. This won’t be the case forever so you should always budget for interest rates rising and be comfortable that you can afford the repayments whatever the rate of interest.
- Move away from renting – more and more people are seeing rental property as a waste of money and want to invest in their own home as a way of saving for the future. Investing in property is a great idea because if you chose the right property it will only increase in value in time meaning your investment is sound.
- Rental income – investment properties can also generate rental income either now or as a retirement nest egg. Beach side properties and properties in popular locations can generate huge amounts of income above the average mortgage repayment amount. So you could end up paying your mortgage off quicker as well as earning an extra revenue stream, which is a great way of building personal wealth.
- Security – your own home provides you and your family with some financial security, particularly if you build equity into it which can be released in an emergency. It also provides peace of mind in terms of being able to set down roots, find good schools for your children and become part of a local community without worrying if you might be asked to move on if your landlord needs the property back.
So if you are a first time buyer, or indeed anyone looking to buy a home you should definitely go for it in 2017.
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