Looking to Buy a Home? 5 Things You Should Be Watching out for in this Current Market

Written by  //  2018/08/13  //  Buying a Home  //  No comments

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Regardless of when you want to buy a home, you want to get the most value for your money. Typically, market conditions will determine how much you need to pay to get a home that provides good value both now and into the future. Let’s take a closer look at what to expect if you’re looking to buy a home in the near future.

Be Ready for Competition

This is among the most competitive housing markets in recent decades. In some cases, you may need to make an offer on a home without seeing it first or pay cash to get your offer accepted. Your home real estate agent may be able to help find homes in your price range before they are listed in an effort to give you an advantage over the competition.

Interest Rates Are Going Up

As the economy continues to remain healthy, interest rates are going to increase. This means that the cost of homes is going to increase as well, which may result in having to buy in a suburb or rural area as opposed to downtown.

Home Prices Are Rising Rapidly

The demand for available homes means that you are going to pay more for those that are currently on the market. It is unlikely that prices will start to level off unless new construction is completed. That is not expected to happen until 2019 at the earliest.

Don’t Buy a Home for the Tax Benefits

Tax legislation passed in 2017 has capped the mortgage interest deduction to homes at $750,000 or less. Furthermore, you can only deduct $10,000 in state and local taxes, and this includes any taxes paid on a primary residence. Your tax adviser may be able to tell you more about how the la may impact you personally.

Look for Duplexes

If you are a first-time buyer, it may be a good idea to buy a duplex or another home with a rental suite. This allows you to buy the home that you want while having someone else paying some or all of your mortgage. By renting a portion of your property, you could be entitled to tax breaks.

Buying a home means doing your homework as it relates to the current market. If you don’t like competition, it may be best to rent for another year or two until market conditions start to relax somewhat. Furthermore, be sure to rely on your real estate agent to get the best possible deal on your next property.

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