The purchase of luxury real estate is always driven by different factors for different people and at any given time there will always be some who are in pursuit of finding a home to buy regardless of economic conditions.
There is an increasing demand lately for luxury property among younger crowds. As their disposable income is on the rise along comes the desire for higher living standards. No longer is a basic home something of interest, a luxury home with more amenities, security and comforts become part of the wish list in a home. Here are several reasons why now is the right time to purchase a luxury property.
Rates are low – Despite predictions of rates rising, they are currently still extremely low. The cheaper your loan rate, the more affordable your new home will be. This all plays a part in your overall budget for a new home.
Begin building equity – Many people are spending thousand of dollars on rent per year that they will never see again. Instead of paying your landlord’s mortgage, pay your own. The sooner you purchase your home, the faster you will begin building equity in your home. Considering that many people get a 30 year loan product for a mortgage, don’t waste anymore time so you can be in a better financial position as you near retirement.
Affordable Insurance – Mortgage insurance premiums are cheaper right now which also helps purchase a luxury home. Purchase a home now while the mortgage odds are more in your favor rather than waiting until house prices and interest rates may also increase. With a more expensive home purchase it may be harder to come up with 20% for a downpayment to avoid PMI.
Rents are on the rise – Some reports on the housing market have indicated that luxury rentals will rise at a minimum of 3% per year. With this being the case, it makes for a compelling reason to buy even sooner. As mortgage rates are at all-time lows, in some cases it can often be cheaper on a monthly basis to pay a mortgage than to pay a hefty rent.