You have heard this many times “Buying is better than Renting” right? Well I mean it right now. My business requires me to follow land acquisitions by larger home builders and what they have in the works. The activity of these builders is way up and as a matter of fact, they are struggling to find well priced land in our surrounding counties. The reason for the new activity is that there is shortage of new homes ready to be bought and they are not developing land quick enough. What does this mean to you? They can only sell so many houses at the current low prices for so long. They have to make money and until volume is back up, prices will have to rise. The combined math of low lending rates and affordable houses means only one thing; It’s is a great time to buy a house. Click to enlarge image below!
If you are renting an apartment and have a good job I would encourage you to entertain the idea of buying a home now. Buying now looks good for a couple of reasons. One, being the affordability. As you can see in the chart above, the cost to buy can be less than renting and a new home is virtually maintenance free for a good while. Throw a low cost warranty on that baby after that and you will continue to be low maintenance. Second, demand will rise. Having to sell a house 2 or 3 years from now that was bought well today should be a good place to be. Well maintained properties will always sell if you can price them well, so obviously buying a new home at a good price today can ensure this down the road. Third, home ownership is still a smart expense. I do not use the term investment necessarily because a primary residence should not be that. But owning a home can give you the ability to save money (in equity and principle service) far exceeding today’s savings rates. Combine all of this and today is the ideal time to buy a home. Not convinced yet? I have also included a link to some new home options in Hamilton and Surrounding Counties. Look at the amount of house and price it would cost. Just being able to increase your lifestyle at your current budget is a huge win.