Tis the season for pumpkin pies, twinkle lights and carols everywhere. But did you know that buying a home can (and maybe even should) be on your list of to-dos before the end of the year?
Here are 8 reasons to buy a house before the calendar year changes once again.
1. Tax Deductions
If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest.
2. Sellers Want Out
Nothing is better for a buyer than a motivated seller. Many sellers are eager to move out before the end of the year. They want to enjoy tax savings on the next home they purchase and they may be willing to accept a lower bid. Consult with your real estate agent and see if that’s the case in your market.
3. Builders Have Deadlines Too
If you’re buying a house that is brand new, there’s a good chance builders may push to close the books on their year to meet quotas. Your price may not change but you may be able to get some upgrades as an incentive to get in the home sooner.
4. Movers are More Available
Ever try moving in the summer? You probably found that the moving companies were booked six weeks out or more. In the fall and winter, it’s normally easier to secure the services of a moving company or rental equipment on shorter notice.
5. There’s Pride (and Money) In Ownership
If you’re renting, your monthly check goes toward something that will last you a month. You’ll never see any return on that money. When you buy a house, your monthly mortgage payment goes toward an investment. There’s something to be said for that, especially over the long term. So, why wait?
6. Payments You Can Plan On
Landlords can increase your rent year to year. Once you secure a mortgage, you can rely on consistent payments if you have a fixed-rate loan. That could be a huge relief to you as you enter a new calendar year.
7. DIY and Like It
Owning a home comes with a major perk for those DIYers. Modernize your kitchen, paint your home’s exterior a new color, change your fixtures or replace your carpeting; whatever inspires you, no one can tell you, No!
8. Gain Weight – The Good Kind
After buying your first home, at first, most of your payment goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity – or savings – in your home. Another factor in equity is appreciation: As home values rise, so does your rate of equity. You’ll be surprised at how quickly you’ll gain the equity weight – which is money in your pocket for your future.
Got you convinced to see if you can get into a new home before the ball drops? Call me today at (602) 456-2195 so we can get you pre-approved and on your way to a new home for the new year!
Skyline Financial Corp. and its loan officers are not tax advisors. Always consult a tax professional for details.