By WVUA 23 News Reporter Savannah Denton
TUSCALOOSA – The federal government raised interest rates once again this week, directly affecting interest rates on all sorts of loans.
Tyler Bigbie with Keller Williams Realty keeps an eye on the housing market every day and said you can really never go wrong investing in a home.
“The good news is most people usually sell their house for the price they bought it, hardly is it sold for any less. If anything, most people actually sell their house for more than they paid,” said Bigbie.
Bigbie said that compared to renting, buying a home is cost-efficient.
“A lot of people are worried about interest rates being 5% and 6%. If you rent, your interest rate is 100%” Bigbie said. “So 5% or 6% really isn’t bad, especially when you consider that one of the best things you can do is purchase a home. We’ve always been told that the best investment you can make is purchasing a home.”
Tuscaloosa homeowners Greg and Melanie Crain recently purchased their eighth home since getting married 43 years ago. They said it’s not always smooth sailing and seeing eye-to-eye on everything is not always easy. However, the Crains learned a lot over the years and have a piece of advice for a young couple making their first home purchase.
“Don’t be house poor. Don’t try to get something that is more than you can afford. Let that be a springboard for what you buy in years to come,” Crain said.
It may be a bit more challenging to buy houses or land but most believe real estate always is always a good investment opportunity. In a competitive housing market being prepared is an important factor.
“I recommend anyone looking to purchase a home to go ahead and get pre-approved and lock in their rate that way if interest rates do rise you can stay at that lower rate,” said Bigbe.
Of course, the goal of any real estate deal is to place a sold sign on top of the for sale sign. Before you buy, whether it’s your first house or your 10th make sure you have all your questions answered.