There are many things to think about when purchasing a home. As fall settles in and with the holidays right around the corner you may be thinking that it would be best to put off or halt your home search until 2020. However, there are some advantages to purchasing a home before the end of the year.
- If you purchase a home in 2019 you’ll see the tax perks sooner rather than later. That’s right since interest paid on a mortgage, and property taxes are typically tax deductible you’ll be able to add them to your 2019 tax filings. Keep in mind that limits apply due to the Tax Cut and Jobs Act.
In addition, if you are planning to add solar to your new home so that you can claim those solar based tax incentives after installation you should know that the maximum reduction of 30 percent will be leaving at the end of 2019. Starting in 2020 the maximum reduction rate will be falling by 4 percent.
2. Depending on the market you live in prices may be down. That’s right, while we are still a sellers market, depending on where you are looking to move you may be able to get more house than you initially thought. That’s because there are markets within markets.
3. Mortgage rates have been on the decline recently according to Bankrate. As a buyer this means that depending on the rate, you pay less to cover every $100,000 than in the past. So, buying now depending on the rate may be better than waiting to see what rates do in 2020, which is also an election year.
4. Unfortunately, 2020 could bring more uncertainty to the economy. A growing number of real estate economists and experts believe that we will see a recession in 2020. When a recession hits people change their spending habits and as you change your spending habits saving for a down payment may not be a priority.
Buying a home is the biggest purchase you will make. It’s important to make sure that you have all the information to help you decide when the time is right to buy your next home. So, if that’s 2019 or 2020 I hope this helps.
*information courtesy of Kayla Matthews, Inman News, Sept. 16, 2019