10 Reasons To Buy A Charlotte NC Home
1. In Charlotte NC it is a buyer’s market. When the government tax credits expired, home buyers disappeared. Now, that those incentives have left, most buyers see no incentive. Yet, the fact that those government incentives are gone is a big reason why now is the best time to buy Charlotte NC real estate! Fewer buyers means better opportunities. Standard and Poor’s Case-Schiller index tracks home prices in 20 of the country’s major metropolitan areas, including Charlotte NC. The drop in prices is amazing compared to the market peak. New York homes are down 20% while a home in Arizona often goes for half the price that it was at the market peak. The national average show that home prices are down 30%. Prices could go lower but, if good economic news and consumer confidence increase, those prices could begin rising. Being an aggressive buyer will also help. Play a little hardball with pricing and a Charlotte NC buyer could do even better. No seller likes to see a potential buyer walk away.
2. Mortgages rates are at an historically low level in Charlotte NC as well as the rest of the country. A current 30-year mortgage comes in at an unbelievable 4.3%. Only two years ago, that same mortgage would have been around 6.3%. The difference in the two rates saves an average of 20% on the monthly payment for a home. If the economy picks up and inflation sets in, those rates are gone for a lifetime. Should the country experience a deflation in the economy, those rates could go lower, but only slightly. And if they drop, refinancing at the lower rate is always an option. Either way, it’s a win/win situation for the buyer.
3. Buy a Charlotte NC home now and save on taxes. Both mortgage interest and real estate taxes can be deducted from federal income tax. Also, should you sell the home for a profit in the future, there would be a savings on capital gains taxes. Only those who itemize could take these deductions. Filing a standard deduction may be better for some. The larger the mortgage and income level, the higher the savings. With these savings on taxes, many find that owning a home reduces substantial costs over renting.
4. Owning a Charlotte NC home gives multiple benefits… and freedom. Once an owner has moved in, the carpet can come up and the bamboo flooring can go down. The purple paint you wanted in your bedroom can now be yours. You are your own landlord. No one can make you change the landscaping unless you want it. Add rooms, alter rooms, update the kitchen and answer to no one but yourself. However humble or opulent, you are the master of your own domain.
5. You’ll have a better Charlotte NC home, quite often, for less money than renting. In many parts of the country, rental prices have remained the same, while home prices have dropped. If you want a better home, in a better neighborhood, buying is the best option.
6. A new Charlotte NC home offers a potential hedge against inflation. Homes have usually stayed ahead of inflation rates. Studies by Professor Karl “Chip” Case of Case-Schiller, and others, have shown that a home generally stays one or two percentage points ahead of inflation on a yearly basis. TIPS, or government issued inflation-protected bonds, have offered a way to beat inflation. But, in recent years, those yields have plummeted. By contrast, owning a home seems to offer better insurance against inflation, even in today’s market.
7. A Charlotte NC home is risk capital. Just like the stock market, a home is a traditional investment which has proven to increase in the long term. Unlike the stock market, that home offers dividends daily to the owner in the form of shelter. So while the stock market is still liable to fluctuations, home prices have historically continued to rise with a better economy. Stocks are difficult investments, in large quantities, for the average person; while owning a home is a much less volatile asset and is a safer part of a larger portfolio. With home prices lower than in past years, the investment made today is almost sure to increase with an improving economy. A home carries fewer concerns on a daily basis and less loss of sleep than stock ownership.
8. A Charlotte NC home payment is a forced monthly savings account. Paying $1,000.00 per month on rent may seem better than a $1,500.00 per month home payment. But, the question is: How much of that $1,000.00 will a person get back when moving out of the rental? With a mortgage payment, part of the monthly payment goes to pay off the principle. That amount becomes equity in the home. A homeowner is using the home as a savings account. Though it is a forced savings, it is a good discipline in financial responsibility.
9. There’s a greater choice than ever before. There is a glut of Charlotte NC homes on the market. The National Association of Realtors estimates the current market at 4 million homes. Those numbers are not as much as last year’s peak availability, but are well above typical levels. Those homes range from upscale homes to the starter home. All are at reduced prices. Even more are coming onto the market as banks unload their inventories of unsold homes. Thus the choice of homes becomes greater, as well as the choice of location.
10. Sooner or later, the market will clear and correct. Demand and supply will achieve a greater balance and prices will go up. In 40 years, the population is forecast to grow by 100 million. That new population will need housing. Current homes and condos going unoccupied are rapidly deteriorating and are being destroyed, which takes more units off the market. That, coupled with a new population and an improved economy will greatly reduce the availability of choice and price.