The only reason one should not a buy a home is if they don’t intend to live there for a very long time. Buying a home and then moving within two years of the purchase doesn’t make a whole lot of sense as there are many costs that come with selling a home. While a homeowner can usually rely on the appreciation of the home’s value to cover these costs as well as the costs that come with buying their new home, this may not be the case if the current home has only been occupied for a short period of time.
That being said, a home is usually occupied for seven or more years, making it very practical to buy instead of rent. This is true at any time and for any market. Many homebuyers think that they need to wait until the time is exactly right before purchasing a home. Meaning that they are waiting for the market to provide optimum conditions to afford them the best options. This is impossible to do however as the real estate market can be analyzed once the downturn or upturn is finished, and not before.
It also always makes much more sense to own than it does to rent as there are no advantages to renting. Homeowners are able to deduct things on their income tax such as property taxes and interest on their mortgage. A homeowner also has full control over making changes to the living space including anything from landscaping changes to the colors of their walls or carpets.
The interest rates on the market today are also very low. Though no one is able to predict what the rates will do in the future and they may drop even further, they could also rise substantially. Owning a home is the easiest way to acquire wealth. The majority of people have more equity in their home than they do in retirement plans, stocks, mutual funds, and savings. Over time, the value of the home will increase. There are some areas that will appreciate more quickly than others.
There are a few ways to ensure that you are buying a home that will reduce your risk of lower appreciation on the home. The first way is to determine how much you want to spend on a home, within a certain range. You can then look at neighborhoods that offer houses in the lower end of that range. By doing this it will keep your home less vulnerable during low periods and the higher end houses will help keep the appreciation up in busy markets. It’s also wise to stay away from buying a house that is very close to a busy street. Houses across the street from a park or a school should also be avoided when thinking about appreciation. Buying in an area where all the homes are very similar in appearance and model.
It’s also always a good idea to speak to an experienced Orlando real estate agent and find out what the market is doing in your area when thinking about purchasing a Central Florida home or estate.
Jeffrey G. Funk, P.A.
Realty Executives Central Florida
7932 West Sand Lake Road • Suite 302
Orlando, FL 32819