According to new research from Puget Sound region research team Dupre + Scott who analyze apartment investment and housing market issues, for the first time ever, rent in Seattle is equal to a mortgage on an average Seattle home. This new housing market phenomenon is encouraging many Seattle renters to give their landlords notice and start the house hunting process as first-time home buyers, eager to get some play in the market as it makes a comeback and satisfy the great American dream of owning a home.
According to Fannie Mae, the top five reasons that people buy a home or aspire to eventually buy a home are: To have a better place to raise their children; A place where their family can feel safe; To have more space; Freedom to renovate to their own taste; and Owning is a better investment. There are many benefits to buying a home instead of renting and for many, the long-term investment benefits of owning a home are a big incentive. If you believe you have the stability to stay in an area for at least a few years, purchasing can make a lot of sense. Instead of throwing away a sum of money every month towards rent, if that money is being put towards a home it is likely that after several years you will have built some equity and be able to get a little it back. Furthermore, unlike rent, a fixed mortgage can’t go up. Making the move from renter to first-time home buyer allows some people an opportunity to lock into a fixed rate mortgage and not have to worry about that price being raised. For some, this makes buying a home more affordable and ultimately protects against inflation over the term of that fixed rate. Finally, home ownership can also allow for tax breaks and federal credit opportunities through the ability to deduct mortgage interest payments and some eligible expenses, helping people avoid federal taxes on earnings from their home sales.
Financial benefits aside, homeownership bliss also comes from the ability to make your new house truly feel like your home. Whatever your unique circumstance is, whether its starting a life together, seeking more space, being able to choose where you want to live, or simply seeking the ability to completely customize a space that is unique to your personal style, these are luxuries most renters have never experienced. However, remembering to look at the big picture when considering such a large purchase is imperative as home ownership does not make sense for everyone.
A house can be a wonderful way to build wealth, but if you haven’t taken the time to fully evaluate your financial situation, or have set unrealistic expectations for yourself, maintaining an investment like a home your new investment can be expensive and labor intensive. This is where using a real estate agent can be extremely beneficial. Navigating all the details involved in a home purchase can be overwhelming for any buyer, but particularly those buying for the first time; a good agent will help guide you through this process and can provide valuable insight on many of the things you will want to consider before you purchase. This includes neighborhood expertise, helping you determine what price range you can afford, helping you find listings that meet your various needs and requirements, evaluating the current market trends, assisting you in structuring your offer to place you ahead of the competition and finally, helping to guide you through the paperwork and any thing else that comes up in negotiating a deal that will best serve you.
At Bennion & Deville Fine Homes, we represent clients of every price range and a broad range of properties. Agents Bob Bennion and Bob Deville are seasoned in the real-estate climate with a combined 40+ years of experience and unparalleled knowledge of Seattle’s residential real estate market. Buying a home is a big decision that will impact every aspect of your life, and we at Bennion & Deville believe that when choosing your agent, it is important that you have every confidence in your agent’s ability to represent your best interests. We have an enthusiastic, hardworking and exceptionally qualified team to make sure we meet your every need along the way and give you a realistic outlook on what you can expect to achieve in today’s market.
If you are interested in talking to us about buying a house, please Contact us.
Resources to help you determine your own rent vs. buy questions:
- Real estate company Trulia features an interactive map infographic that determines your rent vs. buy prospects by city/state based on some basic mortgage rate, tax bracket and length of stay information: http://trends.truliablog.com/category/rent-vs-buy-index/. See how you chalk up!
- Windermere’s Get Ready To Buy tips: http://www.windermere.com/buying_and_selling/buying/prepare
- Fannie Mae, Know Your Options – Buy Overview: http://knowyouroptions.com/buy/overview
- Keeping Current Matters article, Why Do We Buy Real Estate: http://www.keepingcurrentmatters.com/2013/10/21/why-do-we-buy-real-estate/