DEBUNKING MYTHS TO HOME BUYINGFinally ready to make the transition into home ownership? That's awesome, and in this exciting time you can be turning to friends and family for an insight into the
Alaska Real Estate Common Sense Points To Buying A Anchorage Home
· Increased Demand Has Made Rentals More ExpensiveAfter the subprime mortgage mess-between 2007 and 2013—something like 6,200,000 people were added to the number of tenants. That boost created enough extra demand for rental units that owners had no trouble increasing monthly rates. It’s a simple case of too little supply chased by too much demand.
· Low Interest Rates Make Homes Cheaper in the Long-RunThe current unusually low interest rates makes the tradeoff with renting an easier call. This winter,Alaska Real Estate home buyers can expect to find 30 year mortgage packages at rates in the low 4% range. If interest rates rise considerably—which just about everyone expects—rental rates can be expected to rise proportionately as landlords cover the added expense. But those who buy a Anchorage home lock in the lower interest rate: the ‘price of money!’ · Buying a Home Yields Predictable Cash FlowWhen you buy a Anchorage home, your mortgage comes with a repayment schedule that shows you exactly how much you are required to pay each month until the end of the loan’s term. With a fixed rate mortgage, the monthly payment amount is an iron-clad guarantee of what you will need to budget. With a fixed rate loan, the dollar amount will usually stay the same (or even fall as the mortgage nears its end). Conversely, unless a major change occurs in the rental market, rental prices will continue going up. And the common sense of consumers knows what to expect, reflected in last month’s Mortgage Reports headline:“Consumers Expect Rents to Rise 2x Faster Than Home Prices in 2015”
· Buying is a Long-Term Investment for StabilityIn addition to the price rise factor, renters will have to keep paying rent for a lifetime—while homeowners eventually get to stop making mortgage payments. Anyone buying a Anchorage home in their 30’s can expect to have paid for it before they reach retirement. That’s very good news, because their living expenses will go down around the same time they start making less money. In contrast, renting just keeps getting more expensive…which can put extra financial pressure on retirees. If you find yourself on the cusp of renting or buying a home in Anchorage, today’s rates should weigh heavily in your decision. If you find that it makes financial sense to buy, the next step is easy: give me a call (907) 598-4663.
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City Mouse or Country Mouse: How to Know Where to BuyYou've made the big decision to become a homeowner - congratulations! Now, the question is, where to buy? While many, many factors go into