Many potential house buyers sit on the fence for months, if not years, believing that taking their time and being cautious will help them make a better buying decision, get a better bargain, and save money. Unfortunately, the opposite is frequently true: delaying a home purchase costs them money. We present these 5 was hesitant to buy a house in Crown Point would cost you to assist you avoid this mistake.
1. Home Prices Still Rising
Home prices are continuing to rise, though at a slower pace today. Despite this, costs are increasing around 10% year over year. This suggests that if you wait to buy a house in Crown Point, the price will be greater. And the more you wait, the higher the price will be.
Here’s an illustrative example . . .
Let’s say a house is now listed for $325,000. You would put down a 10% down payment of $32,500 and then finance the balance $292,500 at this price. However, with a forecast price increase of 7.7%, if you wait a year to buy, the buying price will be $350,025. Simply by waiting one year, your 10% downpayment will be $35,003 and you will need to borrow $315,022 — an increase of $2,503 for the down payment and $22,523 for the mortgage.
2. Low Inventory
In addition, inventory remains low in practically all of the county’s markets. And there’s no indication that this tendency will change anytime soon.
So hesitating to buy a house in Crown Point will likely cost you more for two reasons:
- Finding a home that meets your requirements will most likely take some time. As a result, you’ll waste a lot of time, energy, and money searching for a home because your selections are so limited. And, while you’re looking for the right home, prices will continue to rise.
- With low inventory, finding a house you like within your price range may be much more difficult. As a result, you may have to pay more to get what you desire.
3. Mortgage Interest RatesGoing Up
Just a few months ago, mortgage interest rates were at record lows. They are now, however, increasing, and industry observers expect this tendency to continue.
Your mortgage will have a higher interest rate if you wait to buy a house in Crown Point. Even if the interest rate is only somewhat higher, you will end up paying thousands of dollars more for the house over the life of the loan.
You must act quickly if you want to prevent increasing interest rates (and housing prices). To discover more about the appropriate course of action, call a Crown Point representative at Northindy Home Buyers.
4. Lost Equity
Every day you wait to buy a house in Crown Point is a day you miss out on building equity. Remember what we said about housing prices rising? If you buy now, your home will be worth more shortly, but if you wait, you will miss out on this opportunity.
Continuing to rent while determining whether or not to buy a house in Crown Point would result in a loss of an investment in the current market conditions. The sooner you buy, the sooner you may start accumulating equity and earning a profit.
5. Missed Tax Advantages
Furthermore, if you wait to buy a property in Crown Point, you will miss out on the clear tax benefits of owning.
Mortgage interest, as well as the first $10,000 in property taxes, are tax deductible. So, if you wait to buy, you may end yourself paying more in taxes.
Use an Agent to Buy a House in Crown Point
It should be self-evident, then, that delaying a purchase can cost you in a variety of ways, some of which can be quite significant. So, what are you waiting for?
Contact us today at Northindy Home Buyers if you’re ready to buy a home in Crown Point and save money by not delaying.