If you’ve been considering buying one of Phoenix’s architecturally distinctive homes this spring, you may be wondering if now is really the best time to buy. Whether you have your eye on a sprawling Southwestern-style home in Paradise Valley, a historic Craftsman bungalow with tons of charm in the Roosevelt Historic District, or a stunning 1920’s Spanish Colonial Revival in Biltmore; you’re sure to find the style that fits your needs and lifestyle!
As a Phoenix real estate agent, people often ask about the current Phoenix real estate market and if buying now is a savvy investment, and I can honestly say that it is! Buying a Phoenix home now can be a great return on investment since home prices are projected to be on the rise in 2013. Here are just a few more reasons, as noted by Quicken Loans, to take the next step in buying a Phoenix home this spring.
- Appreciation– Buying a home now (at the current rates) can almost ensure your home’s appreciation in the future. Mortgage rates are near historic lows and home prices are the lowest the nation has seen in 10 years! If you hold on to the home until after the market improves, this can result in a significant return on investment!
- Property Tax Deductions– For income tax purposes, real estate property taxes for a vacation home and first home are fully deductible. The IRS (Publication 530) provides detailed tax information on and answers questions on what deductions for which home owners are eligible.
- Preferential Tax Treatment– If you own your home for over a year and receive more profit than the allowable exclusion after the sale of your home, the profit will be considered a capital asset, which are given preferential tax treatment.
- Equity Building– There are many factors that play into the final decision of which mortgage loan works best for you such as credit qualification, loan flexibility and annual percentage rate (APR). However, there’s a new trend towards equity building among today’s buyers which means paying more on a loan each month in order to decrease the principle balance more quickly. This trend, called equity building, allows borrowers to:
- Pay off the principle balance faster
- Lock in record low interest rates
- Shorten the length of their home loan
- Own their home faster
- Pay substantially less mortgage interest
- Pride– This aspect is still key when it comes to the benefits of owning your own home. Going through the home buying process, building value into your home and having a place to call your own is still a thriving portion of the American dream.
While purchasing a home is a large decision, the advantages of buying a Phoenix home now are impressive. I always enjoy showing buyers what the Phoenix real estate market has to offer as there are a number of gorgeous homes that offer a kind of unique style you’ll have a hard time finding anywhere else. It’s my passion to match buyers up with the home that really makes them feel like they’ve found the perfect fit.
If you are interested in seeing some of the Phoenix homes that are currently available; please let me know! We can discuss your ideal neighborhood and what you’re looking for and can zero in on some of the best options.
I look forward to helping your find your Phoenix home!
Joe Janus, real estate agent and Realtor® specializing in Homes with Exceptional Style in Phoenix, Scottsdale and Paradise Valley, Arizona