Fairbanks, Anchorage Real Estate: 4 Financial Reasons to Buy a House in Alaska
With mortgage rates low and new down payment programs in place to widen access to homeownership, Alaskan homebuyers are feeling confident. However, the age-old question persists: Do you jump into the real estate market and buy a house in Alaska or stay in your safe zone and continue to rent?
It is true that the reasons are different for every homebuyer and each financial situation will vary. But given where home prices are headed in 2015, it's time to set your sights on homeownership! Here are 4 important financial reasons to consider in your decision to buy:
Homeownership is a savings of its own
Many residents in Fairbanks, Anchorage, Eagle River, Palmer, Wasilla and North Pole have a hard time growing their savings while still making a housing payment. Owning a home is a type of "forced savings" and can stop Alaskan residents from putting off saving to another day.
You have a housing payment either way
When you're tackling the age-old question of buying versus renting, it's important to remember that you are making a housing payment either way. When you purchase a home in Alaska, you are paying down your own principal. When you rent, you are paying your landlord's plus a return. Ask yourself which is the better financial investment.
Housing can protect you against inflation
While housing prices will slowly rise in 2015, Alaskan residents may not always be able to keep up with the rising costs of rent. Renting costs can rise higher than the rate of inflation and owning a home can act as a hedge against this.
Real estate is the ultimate investment
Aside from owning a home, your other options for investing include stocks and bonds. However, few are interested in borrowing money to purchase them and few lenders are willing to let you.
Instead, "homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor," suggests real estate website Keeping Current Matters. "Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity."
Make 2015 the year you put your finances first and start to build your overall wealth. Buying a home in Fairbanks, Anchorage, Eagle River, Palmer is the perfect place to start! Madden Real Estate has the real estate knowledge and experience to help you successfully purchase your dream property!
Will your home purchase in Alaska this year be a result of relocation? There are many financial considerations to make in this area as well! For instance, is your company covering the moving expenses? What are the costs of the living changes? For instance, the transportation and the housing costs.
Moving to a new city, state or even country is exciting, but there are many factors to account for. Madden Real Estate has an excellent team on board to help make your relocation as seamless as possible, including finding a home you love and covering all of the moving bases.
Reference the infographic below if you are planning to relocate to Alaska in 2015.