You’ve dreamed about sandy beaches, crazy water sports, gorgeous shorefront views and vibrant entertainment options all your life and now your dream is about to come true, as you are contemplating the idea of buying a home in California. Nonetheless, this is a big step involving considerable expenses, so you are probably asking yourself many questions. Am I making a smart move here? Am I ready for this radical change, from a financial standpoint? In case you have always wanted a solid roof over your head in the sunny state of California, we’ve got excellent news for you: real estate experts affirm that now is the best time to buy a property. Keep reading to find out why.
1. Interest Rates Expecting to Increase. In case you are relying on financing to purchase a house in California, you know that interest rates are your worst enemy. It’s always difficult to deal with raising home prices and raising interest rates simultaneously. Nonetheless, specialists warn people that interest rates could reach 5% by the end of the year or during the first quarter of next year. In case you are intimidated by huge interest rates, it would be a good idea to buy now.
2. Home Prices Are Not As Intimidating As They Used to Be. In recovering markets, home prices are not very prohibitive. As long as you are determined and flexible, you could find affordable homes in your ZIP code and use your negotiation skills to lower the asking price or unlock additional perks. Feel free to make and impose your own rules; you are operating on a buyer’s market.
3. Renting Is Not Always a Cost-Effective Strategy. In some of the most overcrowded, top-rated Californian homes you can expect to spend anywhere from $1,500 to $3,000 and up on rent. According to calculations made by financial analysts, a 4.2% interest rate correlated with a mortgage of 400,000 dollars would lead to a monthly payment of 1,961 dollars.
In this case, wouldn’t it be preferable to try to find a single-family home located in a less sought-after neighborhood that would still enable you to raise your kids in a safe environment and leave your Californian dream to the fullest?
4. A Great Job Can Boost Your Buying Power. An excellent job is a constant source of income that can boost your quality of life and also increase your buying power. Any creditor will analyze your particular debt to income ratio before offering you any form of financing. Therefore, a new job offer that may bring you to California could mark the end of your financial hardship, allow you to pay off your debts and buy the home that you’ve always wanted for you and your family.
At the end of the day, proper research, perseverance and an understanding of the local real estate market will help you find the best place under the hot Californian sun. There’s no time like the present, so hurry up and get the keys to the house or apartment that you can afford today.