June 26th, 2012 4:49 PM by Heather Brown
1. Austin has a Healthy Market - Supply and demand are indicators of how the market is doing. In today's local market, demand continues to rise due to population growth, relocation and our consistent job market. Supply is steady with new home construction still in recovery. Altogether, these factors combine to make a healthy and stable market. Austin persistently boasts national attention - topping the real estate charts in publications such a Forbes, Newsweek and Wall Street Journal - our city remains desirable when compared to other major cities in the U.S.
2. Low Interest Rates - Interest rates have reached historical lows in the last several years. Not only will homeowners pay less interest over the course of their loan, but their monthly payments will be smaller and more manageable making it easier to afford a larger house and providing the ability to pay down their mortgage sooner. Rates can fluctuate at any time which is one great reason to take advantage of low rates while they are available.
3. Tax Exemptions - Homeowners can apply to save money on their income taxes every year. The tax break amount depends on your personal tax bracket, the size of your mortgage, the length of time in which you've held the mortgage amongst other factors. In addition to mortgage interest and property taxes, Texas offers exemptions for school taxes and county taxes. Find a complete and updated list at: www.window.state.tx.us/taxinfo/proptax/exmptns.html
4. Rising Rent - In most cases, the cost of renting is higher than the landlord's actual monthly payment. When renting, your monthly payments can increase as the market increases. Supply and demand is a big factor here. Demand for nice rental homes is high and supply is low. This is driving rent prices in Austin Up!
5. Freedom - Speaking of landlords, aren't you tired of waiting for those shabby, old cabinets to be replaced? When you own a home, consulting with landlords will be a thing of the past. You can paint, remodel and replace everything including the kitchen sink, all at your own choosing. Best of all, you're probably adding equity to your home.
6. Building Equity - Home equity increases when the principal portion of payments are made against a homeowner's mortgage balance and when the property's market value appreciates.
7. Building Wealth - "Home equity is the largest single source of household wealth for most Americans" as noted by the U.S. Department of Housing and Urban Development. By simply paying off your home loan each month, your are building wealth. Remember the principal portion of your mortgage payment is applied toward equity which is why many homeowners view their monthly payments as a Savings rather than a Cost.
8. Appreciation - According to Forbes.com, U.S. home prices have increased 247% since 1980. although real estate does not not appreciate every year, history has proven that home prices will continue to rise making hoemownership a wise, long-term investment.
9. Incentives - In today's competitive market, some home builders and seller's are offering generous incentives and price cuts. As a buyer, you can probably, with help of your realtor, negotiate items such as closing costs, title policy and a home warranty.
10. Stability - The National Association of Realtors recently reported that studies showed homeowners to be "happier and healthier with higher life satisfaction, higher self esteem and perceived control over their lives. Long term residents are more prone to volunteer and participate in civic activities".
*information obtained from Heritage Title Brochure - Reason's to Buy a Home in Today's Market.
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