Purchasing Boston real estate for sale in a good long term investment. Here’s why:
Five years ago, we were seeing rapid, 7-8% annual gains in Boston real estate values as the market was on a roll. More recently, last year we saw a period of slower growth, and in the Midtown condo high rise market. In these first couple weeks of 2020, we’re were seeing a strong real estate market with good indicators of growth: a strong downtown Boston economy, low unemployment, and high demand for homes. Then came the coromavirus and the market is slowing shifting into a slower pace. But the fundamentals of the market are still strong.
Beacon HIll rental market is still strong.
Although rental prices have cooled a bit it will not be difficult to find renters for your Beacon Hill condo investment, and rental rates will be comparable with other major major cities like NYC. Downtown Boston has a constant stream of new residents needing a place to live, and renting remains a popular option.
The US 30-year mortgage interest rate dropped to 3.29%, its lowest point since 2012. Even before that, the National Association of Realtors was predicting that the average rate for 2020 would come in at just 3.6%. By comparison, the high point for mortgage rates in the past year was 4.49%. Locking in a low mortgage rate now by purchasing or refinancing a home, lenders say, is a smart money move that will pay off for the next 30 years.
Seaport District is an incubator for new ideas. Meanwhile, with more college degrees than the national average, Boston’s workforce is standing by to build successful enterprises. That’s why buisinesses like Amazon and other high tech companies are moving to the Boston Seaport
Finding a Boston real estate to purchase a second condo to generate rental income used to be like finding a unicorn, but it’s getting more common in Boston these days. That’s because of new Boston Seaport condos being built, not just in the Seaport but also in the Midtown area.
It’s just as true in 2020 as it ever was: Putting money toward a mortgage payment builds wealth over time, and renters are more or less throwing money away. According to the New York Times, the average homeowner has a net worth of $195,400, 36 times that of the average renter’s net worth of $5,400. With first-time homebuyer programs available to help put a down payment together, renters living in Boston— or anywhere else — would be wise to make 2020 their year to buy.
Like it or not, our tax system is heavily skewed to give homeowners the advantage. Most people know that once you buy a Beacon Hill condo or Midtown high rise condominium, you can deduct the interest on the mortgage from your income taxes. But did you know that property tax is also an income-tax deduction? Plus, after a few years of paying down the mortgage, you’ll have access to home equity, which you can borrow against to pay off higher-interest debt.