With the slow recovery of the economy and real estate market, potential home buyers, especially those who are first-time buyers may hesitate to invest in the real estate market. Here are five reasons why the Middle Tennessee real estate market is a solid investment especially for potential home buyers.
1. Low interest rates: Low interest rates usually help first-time home buyers to find reasonably priced housing options. While the average weekly interest rate remain below 4.5% for a 30-year mortgage, buyers must understand that interest rates can change suddenly. Although there is no sign that there will be a sudden upward swing in rates, any small increase can send monthly payments up; preventing buyers from getting that new home, they really wanted.
2. Huge down payments are unnecessary. Today, because lenders are paying more attention to buyers than in recent years, several options are available for you to purchase your first home without having to pay a 20% down payment. The FHA (Federal Housing Administration) provides first-time homebuyers with a minimum 3.5% down payments. Mortgage insurance is a requirement for these loans. In Tennessee, buyers of new homes can benefit from a six-month lock on their mortgage loan interest rate from the Tennessee Housing Development Agency.
Before shopping for a new home, buyers can simplify the financing process by considering pre-qualifying for a home loan and set up a financing commitment. There are several homebuilders on the market who are offering favorable financing or financial incentives to their customers
3. New homes customized to fit your lifestyle. Current new homes such as single- family units and urban condominiums have features that accommodate the demands of a current hectic lifestyle. These features include open floor plans, low- maintenance materials and flexible spaces that attract younger buyers. Since energy costs today is a growing concern for consumers, homebuyers will find it more reasonable to operate these new homes, which are more energy efficient than those built decades ago.
4. Technology makes house shopping an easy and fun activity. Finding key information on any property is quick and easy with the use of mobile apps. Tech-savvy home buyers can use their cell phones and tablets to view pictures and get all the important details on a property.
5. Owning a home can build wealth and battle rising rents. The majority of Americans view owning a home as the key element of their net worth. To them, it is also a significant step in amassing personal monetary effects over the long term. There has been a decline in property in several markets, but Americans have accrued over $10.8 trillion of assets in their homes. For most American families, these assets represent the biggest share of their net worth.
Rent prices are currently climbing and was 2.8 % in 2013, resulting in decline of rental vacancies. Recent information coming out of Harvard University’s Joint Center for Housing Studies states that rental vacancies fell to the lowest point in 2000. This means that rather than investing in a property owner’s property, now is the right time to invest in your own home.