Buying luxury property is always driven by different factors for different people. At any given time there will always be some who are looking to find a home to buy regardless of economic conditions.
There has been an increasing demand for the luxury property among younger crowds these days. As their disposable income is on the rise along comes the yearning for higher living standards. No longer is a basic home something of interest, but a luxury home with more amenities and comforts becomes part of the wish list in a home. Here are 4 reasons why now is the right time to purchase a luxury property.
Begin building equity – Many people spend thousands of dollars on rent per year that they will never see again as they pay towards their landlord’s mortgage. The sooner you purchase your home, the faster you will build equity. If you will be considering a 30 year loan product for a mortgage, don’t waste anymore time so you can be in a better financial position as you approach retirement.
Rates are low – Despite predictions of rates rising by now, they are still extremely low. The cheaper your loan rate, the more affordable your new home will be in your monthly payment. This all plays a part in your overall expense for a new home.
Affordable Insurance – Mortgage insurance premiums are cheaper right now which also helps purchase a more expensive, luxury home. Buying a home now while the mortgage odds are more in your favor rather than waiting until both house prices and interest rates increase.
Rents are on the rise – Some reports on the real estate market have shown that luxury rentals will rise at a minimum of 3% per year. With this being the scenario, it makes for a good reason to buy even sooner. Being that mortgage rates are at all-time lows, in some cases it can even be cheaper on a monthly basis to pay a mortgage payment than to pay a hefty rent.