The Mendosa-Balboni Team knows that the purchase of luxury real estate is 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 market conditions.
There has been an increasing demand recently for luxury property among younger crowds. As their disposable income is on the rise the desire for higher living standards has followed suit. No longer is a basic home of interest. Now a luxury home with more amenities and comforts become part of the wish list in a home. Here are four reasons why now is a great time to purchase a luxury property.
Low Rates – Despite expectations of rates increasing, they are still very low. The lower your loan rate, the lower your new home mortgage payment will be. This all plays a part in your overall budget for a new home.
Rents are on the rise – Some real estate market reports 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 make your purchase even sooner. As mortgage rates are at all-time lows, it can often be cheaper on a monthly basis to pay a mortgage than to pay a hefty rent.
Begin building equity – Renters are spending thousand of dollars on rent per year that they will never see again. Stop paying your landlord’s mortgage and start paying your own. The sooner you purchase your home, the sooner you will begin building equity in your home. As 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 less expensive right now which also helps purchase a luxury home. Purchase a luxury property 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 more challenging to come up with 20% for a downpayment to avoid PMI.