IT’S A GREAT TIME TO BE A FIRST TIME HOMEBUYER
Let’s get back to basics. Before the crazy days of 20% annual appreciation, people used to buy houses to have a place to live! The average net worth of renters is $4,000; the average net worth of homeowners is $184,000. Historically, homes have appreciated at 5% per year. But even if property does NOT appreciate (which is unlikely), here are some reasons why it makes more sense to buy than rent:
Debt Pay Down–A fixed mortgage payment will not change over time but rent will increase with inflation. Over time, the principal will be paid off while renters will have no equity.
Tax Incentives–Mortgage interest and property taxes are deductible. The goverment wants you to own instead of rent and provides incentives.
$8,000 Federal Tax Credit–I have clients borrowing downpayment money from their parents until they receive their tax refund next year.
Utah Home Run Grant Program–Provides a $6,000 grant for those buying new construction. Some buyers may qualify for both the $8,000 tax credit and the $6,000 grant.
Record Low Interest Rates–You can get a fixed rate conventional mortgage for about 5%. That’s almost free money!
FHA Loan Programs–You only need 3.5% and sellers will often pay all closing costs!
Buying instead of renting makes more sense today than ever. There are some great deals in Park City right now. If you are a first time buyer or the parents of a potential first time buyer, I urge you to contact me to learn more about the great opportunities available. Greg Cutt and I are hosting a First Time Home Buyer open house on May 14th. It’s free and open to the public!