The journey of buying a home can seem like an overwhelming process. While it can get complicated at times, homeownership is a rewarding experience that can positively impact your future.
Doing your research and getting prepared for what awaits is essential. We’ve put together this list of 4 new regulations and trends we think you should know before buying a home in 2018.
Tax Codes Changes & Impact
With the New Year come new changes to tax codes. A new law has been put into place in 2018 that cap the deduction for property, state, and local income taxes at $10,000. The new tax bill also caps the mortgage interest deduction at home values up to $750,000 (down from $1 Million). The good news is that this change is only expected to affect 1.3% of new mortgages, mostly in more expensive markets. If you’re not planning to itemize on your tax return, there is no need to worry about this (or any) interest deduction. But, if you are looking to itemize, then you need to be aware of the new limit.
Mortgage Rates
It’s been predicted that mortgage rates will hover somewhere around 4% – 4.5% in 2018. These rates are marginally higher than 2017, but still historically low. This is why it pays to lock in a home loan in 2018, because mortgage rates are still relatively low.
Demand
With a limited number of moderately priced homes available for the past few years, it caused younger buyers to steer away from ownership. In 2018, more mid-level inventory should begin to pick up, making owning a home more attainable for those with smaller budgets.
Hire a Real Estate Agent
With so much information easily accessible online people often wonder why they should hire a real estate agent. Agents have the knowledge to help you sort through different neighborhoods, comparable homes, and market conditions. They have the professional network to help you with other home buying services and can often make recommendations. Agents know how to handle the volumes of paperwork you’re about to go through and are also available to answer any questions before and after closing. Now, more than ever before, it’s smart to have a real estate agent at your side!
If you’re thinking of becoming a homeowner at some point, there’s no time like the present to make the leap! Buying a home can be a smart financial decision now and for years to come. The sooner you go from a renter to a homeowner, the sooner you’ll turn your home expenses into an investment.
About Asheville Realty Group
Asheville Realty Group is located in the heart of Downtown Asheville, surrounded by the Blue Ridge Mountains. We are your local Asheville connection servicing the towns of Arden, Asheville, Black Mountain, Candler, Fairview, Leicester, Mars Hill, Hendersonville, Fletcher, and Weaverville to just name a few. As an independent group, our brokers combine their experience from successfully closing hundreds of transactions every year. Asheville Realty Group specializes in out of town customers, looking to relocate to Asheville, NC.
Are you ready to experience the joys of homeownership?
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My wife and I are wanting to buy our first home next year, so thanks for sharing this. I like your point about choosing a real estate agent that can help you sort through the different neighborhoods. I will be sure to find someone familiar with the area so we know all of our options.
My wife and I want to buy a home next year so thanks for sharing this. I like your point about how cheap mortgage rates were in 2018. Hopefully these rates will stay low for next spring when we start shopping around for lenders.
My wife and I want to buy a home next spring so thanks for sharing this. I like your point about finding a real estate agent that can handle large volumes of paperwork. We’ll be sure to find someone who has lots of experience so they can handle things like this while we focus on finding the perfect home.
I like how you mentioned that one should consider hiring a real estate agent, as they can help one find the best neighborhood for their needs. One of my friends will be getting married, so he may want to buy a home in the near future. These tips could really help him with that process, so thank you for sharing them.