For those of you who happen to be planning to buy a home in the New Year there is a whole lot to celebrate this upcoming year. According to National Association of Realtors, “varieties of financial vectors have dovetailed” to make 2016 the year to buy a home.
Mortgage rates have been bouncing around record lows for a while now. However, even though they are likely to start going up, you have not missed your chance to get a deal on a house. Even though they may creep up at any moment, it is nonetheless a fact that interest rates on home loans are at historic lows, with a 30-year fixed-rate home loan still hovering around 4%.
Rents have skyrocketed! Another reason homebuyers are lucky is that rents are going up, up, up! In fact, rents in 2015, according to the 2015 Rental Market Report, 88% of property managers raised their rent in the past 12 months, and an 8% hike is predicted for 2016.
Home prices are stabilizing. For the first time in years, prices that have been climbing steadily upward are stabilizing, restoring a level playing field that helps buyers drive a harder bargain with sellers, even in heated markets.
Tax laws continue to favor homeowners with advantageous tax breaks, so you are not just buying a place to live—you are receiving a tax break! The biggest one tax advantage is that unless your home loan is more than $1 million, you can deduct all the monthly interest you are paying on that loan. Homeowners in the South Florida area may also deduct certain home-related expenses and home property taxes.