Summer may be real estate’s busy season, but winter offersgreat opportunities for home buyers,especially forrenters looking to become homeowners, growing families trading up to larger houses andbaby boomers seeking homesto fit their evolving lifestyles.
Generally speaking, your housing choices during the late fall are still healthy. October and November are great months to go house hunting. December is usually sparse, market-wise, but if that fits your timeline, you could luck out.
The benefits to buying a house at the end of the yearinclude the following:
Tax savings
If you closeby December 31, you candeductmortgage interest, property taxes,points on your loanand interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot ofinterest.
Motivated sellers
Many sellers want to enjoy tax savings on the next hometheypurchase. They may accept lower bids in order to meet Uncle Sam’s deadlines. However, if you’re in a strong seller’s market, you’ll want to be conservative and heed advice from yourreal estate professional.
Builder incentives
If you’re buying a house that is brand new, there’s a good chance builders may push to close the books on their year—and meet quotas. They mayoffer upgrades or little extrasto sell houses before the calendar turns.
Available movers
Many moving companies are booked six weeks or more in advance during the busy summer months. In the fall and winter, it’s normally easier to secure the services of amoving companyorrental equipmenton shorter notice.
Paying toward something you own
If you’re renting, your monthly check goes toward something that will last you a month: You’ll never see any return on that money. When you buy a house, yourmonthly mortgage paymentgoes toward an investment—and ultimately a roof that’s yours.
Consistent payments
Landlords canincrease your rent. Once you secure a mortgage, you can rely on consistent payments if you have afixed-rate loan.
Freedom to renovate
Modernize your kitchen,paintyour home’s exterior neon orange, change your fixtures orreplace your carpeting; whatever inspires you,no one can tell you, “No!”
Gaining equity
In the beginning,most of your paymentgoes toward interest. But gradually more will go toward paying off your principal, meaning you build upequity—or savings—in your home. Another factor in equity is appreciation: As home values rise, so does your rate of equity.
Written by Darren Wilson, The Wilson Team
Thinking of selling in the winter? Check out this blog post and find out why that may be best.
