Housing Prices Are Likely To Grow Depending On The House Design
The future is difficult to predict, but let’s consider two of the most important factors: the first is what will grow faster in these eras: real estate prices or rent, the second is what can happen with interest on loans.
Housing prices are likely to grow faster than rent, because the demand for house design remains very high, while the supply is low.
It is quite likely that interest rates on loans will rise next year. No one knows what interest rate strategy the Fed will choose, but it must be noted that they have already begun to creep up slowly. If there is an increase in rates, it will make the purchase of real estate less affordable next year as compared to rent than it is now. It is believed that by this time next year the purchase price may even exceed the rental price in the most expensive cities.
- Of course, there are circumstances when a house design may not be the best solution either.
- Suppose you plan to live in your house for three years and do not use tax credits many homeowners do not do this simply because of ignorance.
- In this case, at the national level, even with a 3.5% loan, the purchase will be only 9% cheaper than rent.
- Obviously, buying a property is not for everyone – especially if you live in a more expensive housing market.
- In short, the decision to rent or buy depends on many factors, both economic and personal, and this decision should be made only by you.
With this article, I wanted to encourage those who are not sure which option is more suitable for their particular situation – rent or buy – take a pencil and paper and calculate the pros and cons of home ownership, taking into account low interest on loans, savings on taxes, rising real estate prices, but also parallel to the rising cost of rent. I will be happy to help you make this calculation, considering your situation.