When Is the Right Time for a Veteran to Buy or Sell a Home
Buying or selling a home is a major life decision. Not only is buying a home one of the largest purchases a person will likely make in their lifetime, but it is also a decision that ties you and your family to wherever that home is located. Likewise, when selling a home, a person is likely uprooting their family and leaving behind memories.
When it comes down to buying or selling a home, the emotional decision is a personal one, but the financial decision does not have to be. Here at Hero Loan, we want to help you figure out the right time for you to buy or sell a home, and then we want to make sure that you can afford it with a great VA loan with one of our low Hero Loan rates.
Top Reasons to Buy a Home in 2020
Buying a home is not something that should be jumped into, but rather it should be well thought out and approached in a realistic manner. That being said, buying a home can be one of the best investments you’ll make in your life, especially for active-duty military and veterans alike. And 2020 is a great time to buy with historically low interest rates and a diminished market of buyers. If you are thinking of buying a home in 2020, here a few reasons to do so:
Low Interest Rates
Interest rates are expected to remain low throughout 2020, which means that by buying now, you will be saving a large amount of money throughout the course of your mortgage. To put that into perspective, the difference between a 4% and a 5% interest rate on a 30-year mortgage for a home price of $250,000 is $53,000. That is $53,000 in your pocket over the course of 30 years, which is roughly $1,800 a year. By taking advantage of today’s interest rates, you’ll not only be able to afford the house you want, but you’ll also be able to save money on the back-end as well.
When looking to buy a home, ensure that you have job security. This can be easy if you are active duty, but for veterans who have entered the workforce, job security is not absolute, especially in 2020. And while there are people who buy a home one year and sell it the next, there is no knowing how the housing market will be a year from now. Real estate will almost always appreciate in value over time, but an increase in value cannot be relied upon for a short-term sale. Make sure that when you make the decision to buy a home that you have a job that you are comfortable staying at throughout the course of the mortgage.
Investing in Real Estate
Buying a home can be a great investment, even if you decide to live in the home for many years. Holding property over a number of years will likely see an increase in value, and you can always rent your home if you need to move for work or another reason. This is especially applicable to active-duty members of the military who will likely be stationed in several places over the course of their career. By putting your housing stipend towards a home, you can see a solid return on investment, even if you don’t live there.
Top Reasons to Buy a Home in 2020
Selling a home can be both a joyous and a difficult decision, depending on the circumstances surrounding the sale. Here are some reasons to sell, and some reasons not to sell your home in 2020.
You Can’t Afford Your Home
One of the biggest reasons to sell your home is if you can no longer afford to live in it. If you are in this situation, downsizing to a more affordable living situation is almost always the right move.
You Need More Space
On the flip side, if you’ve outgrown your current home, it may be time to look for something with a bit more space. This is especially applicable to growing families who are still in their starter home.
Property Values Have Increased
One of the best parts of owning a home is seeing the property values climb in your area. When this happens, you may be in line for a windfall that can see you sell high and either pocket the gain or use it to purchase a different home that meets more of your wants and needs. This, coupled with 2020’s low-interest rates, make it a great time to sell for those in this situation.
Reasons Not to Sell
Sometimes it just doesn’t make sense to sell your home and buy a different one. Here are a few times when you should consider staying put and planning for a future purchase instead of one right now:
- You just refinanced
- You’re worried about job stability
- You’re not willing to compromise on price
Selling a home is not always an easy process, especially if you live in an area without ready buyers. In this situation, it can be a great time to make a long-term plan to sell your home, including making improvements to the home. But for those who are ready to sell their existing home, or are first time buyers, Hero Loan can help put you into a new home with great rates on their VA loans that look to continue throughout 2020.