Are you on the fence about buying a house? Maybe you think renting is the ‘safer’ option, so you continue.

 

You’ve probably heard rates increased, which just makes you feel better about not buying and continuing to pay rent.

 

But what if I told you there are eight reasons to buy a house now?

 

There are, and I will share them to help you see the benefit of buying a house now.

 

1.    Landlords Love that you Continue to Rent

 

Guess who makes out when you continue renting?

 

That’s right, the landlord.

 

You are lining his/her pockets and letting your landlord make out on the deal while you continue paying rent and have nothing to show for it.

 

Sure, you can move yearly and not pay property taxes, but there are many other benefits of owning a house.

 

2.    Rent will Continue to Increase

 

Landlords generally raise rent prices annually whether or not there’s inflation. But when you add inflation to the issue, you’re looking at much higher rent prices, and again, you have nothing to show.

 

3.    You Won’t Pay Overinflated Prices fora House Today

 

The days of houses selling in a matter of hours or days for prices much higher than their value are gone. You don’t have to worry about paying too much for a house or being upside down (owing more than the home’s value).

 

Buyers have much more room to negotiate home prices and get what they want. You’ll also have more leeway when asking for contingencies, such as a home sale or inspection contingency.

 

4.    There’s Less Demand

 

Looking back over the last few years, homebuyers had to makefast decisions, sometimes on the spot. If they didn’t, they’d lose the house.

 

There isn’t nearly as much demand today, so buyers can take their time and be picky about what they want in a home. As a result, it’s a much more relaxed environment.

 

5.    Sellers Might Pay your Closing Costs

 

Speaking of buyers having more say in what they get out of the deal, many sellers will help with your closing costs to get the deal.

 

This doesn’t mean your down payment; you must come up with that or use gift money from someone not tied to the transaction. But, sellers can cover a large amount of your closing costs if you work it into the sales contract.

 

You might be pleasantly surprised to learn how many sellers are willing to do that today.

 

6.    2-1 Buydowns Make it Even Easier to Buy a Home

 

If you have a seller willing to help with your closing costs, consider a 2-1 buydown. This program requires a large upfront payment, but you pay a lower interest rate for the first two years you own the home. Your mortgage payment might even be lower than your rent!

 

You can use seller funds to pay the upfront fee and enjoy the lower payment.

 

Here’s how it works.

 

You pay 2% below the note rate for the first year and 1%lower the second year. The rate adjusts back to its normal note rate in the third year. By that time, you should be able to handle the change or refinance if rates decrease by then.

 

7.    High Rates Won’t Last Forever

 

Yes, interest rates are higher than in the last two years, but this won’t last forever. Plus, just because you borrow a 30-year fixed-rate loan doesn’t mean it’s forever. You can refinance if rates fall; even if they don’t, real estate investments are a hedge against inflation.

 

8.    You’ll get Tax Benefits

 

There are no tax benefits when you rent. But, if you buy, you can write off the discount points, origination fees, and mortgage interest paid. You may also write off your property taxes.

 

There are limits each year on what you can deduct, so talk to your tax advisor about what you can deduct, but know that you don’t get those benefits when you rent.

 

Final Thoughts

 

Now is a perfect time if you’ve toyed with the idea of buying a house. There’s much less stress, you have options to make the payment more affordable, and sellers will work with you much more than in the last couple of years.

 

Renting is great when you start your adult life, but when you’re ready to settle, nothing replaces the benefits of buying a home.

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