Over the years, Georgia real estate has been a good investment choice for first-time homebuyers. But purchasing your first-time can be a stressful task, one that requires careful planning and consideration. The following reasons will put a positive spin on this stressful decision. It will answer the main question in the back of your mind…whether first-time buyers should invest in Georgia real estate now?
Owning Is Cheaper Than Renting
Statistics show that buying a home is turning out to be more affordable than renting. If you consider how much home buyers spend monthly, you will have a clearer idea why buying is a better idea. Homebuyers spend about 25% of their income making mortgage payments; while renters, on the other hand, spend almost 35% monthly. Loan programs like 100% USDA financing eliminate the requirement of large down payments so first time buyers can easily qualify without the cash savings typically needed for traditional home loans.
Home Loan Approval Is Easier
Even getting the finance for a home is becoming much easier as the housing market continues to recover. The average down payment on a house is now averaging 15% on the asking price. In addition, there are still programs that enable first-time buyers to purchase with zero down payment – USDA, VA and HUD 100 Down. Even FHA still permits down payments down to 3.5%
Low Mortgage Rates
Across the nation, mortgage rates are currently around 4%, and while the interest rates are near all time lows, they are rising gradually. Nevertheless, experts believe that despite the Federal Reserve increasing the short-term interest rates, mortgage rates will remain relatively low in the foreseeable future. This provides first time buyers with a compelling reason to consider a home purchase.
Property Values Increasing Again
The great news for first-time buyers is that latest home price indexes show that home prices are once again increasing. It’s a good time to buy. Some hot markets in North Georgia are even witnessing record high prices and bidding wars due to low inventory. This is especially true for lower priced homes appealing to first time home buyers. Additionally, brand new inventory is being added continuously as builder confidence grows. Large portions of land are being purchased by contractors to build homes and gated communities.
As a first time buyer, ensure that you do your homework before making the decision to buy real estate. Purchase a home only when it makes sense to you financially. Also, if you are taking out a mortgage, your monthly payments (with taxes and insurance) should be lower than 30% of your monthly income. Also, remember to choose a location that is good enough to attract potential buyers in the future. While the values of property do appreciate, it usually happens over a number of years. In the long run home ownership continues to be a good investment and tax deduction.
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