In case you have not heard it this year: You are getting better. And you are ready to launch for bigger things.
Like a farmer who worked day and night for a bountiful harvest, it is now your time to savor the crop you planted and nurtured. You would not want your hard-earned money to come to waste, right?
When we say bigger things, we mean long-term investments that need to be carefully thought of. After all, you are not just buying a cute figurine you passed by the street or checking out a pair of shoes you added to the cart out of impulse. You are financially ready to make huge decisions, like buying a house.
It might be known to many that the location of real estate affects much of its value. But seldom have we asked the “when” question to get a good deal. Is it wise to buy a house at the beginning or end of the year? When really is the perfect timing?
We say you should get a home at the end of the year. Here’s why.
Good time for a home prices
The time of the year has something to do with the real estate prices. Most of us want to spend the last months of the year unwinding and reuniting with families. Who wants to go house hunting during the busy holiday season, right? But for wise investors like you, this can be the best time to buy a house because of many economic factors.
Studies found that summer is the busiest moving time of the year. More people are out in the housing market at the end of the school year during the late summer, which means there is more competition that can spike housing prices, Investopedia said.
On the other hand, the cold months at the end of the year can send fewer people on home buying, or in other terms, a time for less competition in the real estate markets. The low-demand period happens during the winter months.
Sellers, who also have a yearly quota to hit, are not getting that many prospective buyers during this season. Indeed your time to unleash that negotiating power to get a new house at the lowest prices!
The right time for your budget
We are going to get this straight: you have more money during the holiday season. From extra pay and 13th month bonuses, you certainly got more cash at this time of the year.
This is your advantage in getting a new property, as the home buying process requires commitment. On top of the budget you have set aside for a new house, you are in the most stable financial situation in the last months of the year, which can give you an added push to start your home purchase journey.
Loans are at an all-time low.
You have considered aspects of your personal finance before deciding to get a new house. You have a great credit score and had the down payment saved up. And if a mortgage loan is included in your plans, now is the best time to do so.
Mortgage lenders, like the sellers, are also most available at the end of the year – an advantage for you to get seamless lending services.
But most particularly, the Organization of Socialized and Economic Housing Developers of the Philippines said that it is best to buy a house this 2021 as loans are at their lowest.
Gino Olivares, the organization’s president, said that the Bangko Sentral ng Pilipinas had its key overnight borrowing steady at 2 percent. The interest rates on overnight deposits remain at 1.5 percent, while lending services stay at 2.5 percent.
Olivares said the interest rate for a PHP2-million total loan from PAG-IBIG is only 7.25 percent. This is less than the 10.5 percent interest rate for the same amount in 2009. The mortgage loan this year will sum up to only PHP2.8-million, if payable for ten years.
Personal finance enthusiasts at The Ascent also back buying a new house this 2021, citing a low-interest rate on mortgage. A lower mortgage rate will also give you a lesser monthly mortgage payment.
Consider tax benefits
Apart from loan advantages, you should also put tax on the table. The ability to cut interest paid on the mortgage is the largest of the different tax benefits in home buying.
Getting a new house earlier in the year promises maximum tax deductions, but when you pay the interest sooner, you can reap more interest deductions in April, Business Insider noted.
As a buyer, you can also enjoy the opportunity at this time of the year as sellers are more motivated to have their property out in the real estate market for income tax purposes. What’s more, you can also take advantage of the tax exemptions and property taxes offered during the holiday season.
Great time for home-hunting in the real estate market
This is the season not only for Christmas shopping but also for home-hunting. Sellers are motivated to decorate the property for the holiday season, giving you the idea of what to get on your future home shopping when you move into your new house.
This time of the year, things have slowed down at work, the weather is cooler for a house tour, and your real estate agent can focus on you to help identify your ideal property, housing expenses up until the closing process.
For other factors around the local market, your local real estate agent is the expert that you can turn to. Camella, the most trusted home builder in the country, has in-house real estate agents and real estate professionals that can help you in a smooth and secure home buying process.
With the factors that we have listed to help you hit the perfect timing on buying a new house, you might currently be excited to check the local real estate market. Need not wait for the right timing for this, though, as you can go through Camella’s catalog of house and lot for sale in the Philippines or start a virtual tour now.