There is no denying it, we are in an environment of high-interest rates. It is the number one reason buyers are hesitant and sitting on the sidelines. Navigating home buying when interest rates are high requires good advice and guidance. A few things you may want to consider... Have you thought about how long you plan on living in the home? Are you thinking long-term, 7+ years? If you are currently renting, are you secure you will get a renewal at a rate increase you are comfortable handling?
If you choose to buy, below are some benefits of buying in a high-rate environment.
High mortgage rates sometimes coincide with a buyer's market, where there is less competition and more negotiating power. This may provide buyers with opportunities to find a property at a more affordable price or the ability to negotiate favorable terms.
Housing is an essential need and you have to pay someone. You either pay the bank or a landlord. Every month that you make a mortgage payment you build equity. Owning a home not only gives you the EPSF factor, (enjoyment per square foot) but you also have the benefit of customization, stability, and tax advantages with owning a home.
The cons of buying in a high-interest-rate environment include higher monthly payments which if you are not prepared, can put a strain on your budget. Make sure you can afford the increased payment.
Ultimately, the decision to wait or buy depends on your individual circumstances and financial goals. It is essential to carefully consider the pros and cons and seek professional guidance from your real estate agent and mortgage broker.
The J Brigham Team is here to help you with all your real estate questions. We pride ourselves in Going the Extra Mile, offering 20+ years of real estate expertise and total dedication to providing custom boutique service with integrity. Please reach out today! #jbrighamteam #nycrealestateagents #nycrealestate #flatiron #gramercy #luxuryhomes