Pick any point in time, and there will be people who wish to purchase a luxury home. Their reasons vary, but for many they want a home that will raise and show their social status, while providing security and comfort in addition.
Here are a few reason why this is a great time for the successful young adult to purchase a luxury home.
Low Interest Rates – Even with the recent rise, interest rates are still at near historic lows. The interest rates are still below four percent.
Rising Rental Rates – While home prices are still rising, rental rates are rising even higher. The monthly cost of a mortgage and taxes will probably still be less than paying rent for a comparable property. And the payment will be fixed, and not subject to rising rental rates.
Mortgage Insurance Premiums are Less. So even if you don’t have the preferred 20% down payment, with the lower mortgage insurance premiums the total monthly payments should still be less than paying rent.
Plentiful Availability of Homes For Sale. If you’ve been reading my posts, I keep saying there is a shortage of homes for sale. However, the shortage of homes is mostly in the starter home segment. There is a wide selection of luxury homes available, and the prices on those homes has not risen as sharply as the lower priced homes.