5552 10th St S, St Petersburg, FL
Earlier this year, the John Burns Market Intelligence report declared: â€œHousing cost to income ratio dropped 25 percent, and housing affordability remains excellent compared to history,â€ and, â€œAffordability is so good that owning the median-price home is now less expensive than renting the average apartment.â€
â€œThis is probably a good time to buy, (as) mortgage rates are the lowest in a half century, but people are just not reacting to that,â€ observed Michael Carliner, an economic consultant and visiting fellow at the Harvard University Joint Center for Housing Studies.
â€œYou should look at a house as something you want to live in, not a get rich quick thing,â€ said Barry Rabinowitz, a certified financial planner and principal of BER Financial Group, LLC in Plantation.
Rabinowitz recommends buying a home now if a person plans to stay in it for five to eight years.
â€œThe days of houses going up in value 25 to 30 percent is not realistic, but neither is the other extreme of them going down that much either,â€ he said.
Rabinowitzâ€™s recommendation is also based on itemizing deductions on a tax return, which allows a homeowner to claim mortgage interest and property taxes.
The mortgage-interest tax deduction doesnâ€™t eliminate the cost of borrowing money, but it does reduce it.
â€œWhen you rent a house, nothing is deductible,â€ Rabinowitz said.
How much can be deducted depends on the mortgage interest paid each year. It is also important to consider what your standard deduction is for the year depending on age, marital status and income bracket.