Summer may be real estate's busy season, but winter offers great opportunities for buying a house, especially for renters looking to become homeowners, growing families trading up to larger houses and baby boomers seeking homes to fit their evolving lifestyles.
Generally speaking, your housing choices during the late fall are still healthy. October and November are great months to go house hunting. December is usually sparse, market-wise, but if that fits your timeline, you could luck out.
The benefits to buying a house at the end of the year include the following:
If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you're paying off a lot of interest.
Many sellers want to enjoy tax savings on the next home they purchase. They may accept lower bids in order to meet Uncle Sam's deadlines. However, if you're in a strong seller's market, you'll want to be conservative and heed advice from your real estate professional.
If you're buying a house that is brand new, there's a good chance builders may push to close the books on their year -- and meet quotas. They may offer upgrades or little extras to sell houses before the calendar turns.
Many moving companies are booked six weeks or more in advance during the busy summer months. In the fall and winter, it's normally easier to secure the services of a moving company or rental equipment on shorter notice.
5. Paying Toward Something You Own
If you're renting, your monthly check goes toward something that will last you a month: You'll never see any return on that money. When you buy a house, your monthly mortgage payment goes toward an investment -- and ultimately a roof that's yours.
Landlords can increase your rent. Once you secure a mortgage, you can rely on consistent payments if you have a fixed-rate loan.
Modernize your kitchen, paint your home's exterior neon orange, change your fixtures or replace your carpeting; whatever inspires you, no one can tell you, "No!"
In the beginning, most of your payment goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity -- or savings -- in your home. Another factor in equity is appreciation: As home values rise, so does your rate of equity.
Updated from an earlier version by Michele Dawson.
8 Ways To Save On Rent
1. Shop around(01 of08)
Open Image Modal2. Move a few miles away(02 of08)
Open Image ModalLocation is everything in real estate. If you live in the most popular area, you're going to pay the highest rent. But if you move a couple of miles (or sometimes even a few blocks) away, you can get a serious discount. For example, renters in my city (New Orleans) pay about $1,250 a month to live in studio apartments on a trendy street. I live four blocks away and pay $750 a month for a one-bedroom. I don't get bragging rights, but I'm still within walking distance - and I'm saving $500 a month. (credit:Getty)
3. Wait(03 of08)
Open Image ModalI start looking for a new apartment a month or two before I need one. If I find a place I like, I keep an eye on it. More often than not, private landlords lower their asking price if they don't find a tenant within a week or two. (credit:<a href="http://www.flickr.com/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="Flickr:" data-vars-item-type="text" data-vars-unit-name="5b9e74a5e4b03a1dcc981301" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="5" data-vars-position-in-unit="11">Flickr:</a><a href="http://www.flickr.com/people/emilio_guerra/" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name=" Emilio Guerra" data-vars-item-type="text" data-vars-unit-name="5b9e74a5e4b03a1dcc981301" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://www.flickr.com/people/emilio_guerra/" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="6" data-vars-position-in-unit="12"> Emilio Guerra</a>)
4. Sign a longer lease(04 of08)
Open Image ModalYou're locked into your rent as long as you're under a lease. If you sign a longer lease, you'll be locked into the lower rate if the cost of rent goes up. Two years ago, my friend signed a three-year lease on his apartment. Last year, the landlord raised the rent $200 across the complex. By locking himself into a set rate for three years, my friend has saved $2,400 so far. (credit:Getty)
5. Haggle(05 of08)
Open Image Modal6. Look for free perks(06 of08)
Open Image ModalI always compare the cost of the rent with the amenities or the utilities that are sometimes included. For example, I recently looked at two duplexes. One went for $775 a month but didn't include any utilities or a parking space. The other rented for $800 a month but included water, trash, Wi-Fi, and an off-street space.Obviously, $775 is cheaper than $800. But when you consider the average water and trash bill in my area is $50 a month, and the average Internet cost is $45 a month, I'd actually save $95 a month by going with the more expensive rental. (credit:<a target="_blank" href="http://commons.wikimedia.org/wiki/File:Parking_lot_Emmen.jpg" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="MediaWiki:" data-vars-item-type="text" data-vars-unit-name="5b9e74a5e4b03a1dcc981301" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://commons.wikimedia.org/wiki/File:Parking_lot_Emmen.jpg" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="2" data-vars-position-in-unit="8">MediaWiki:</a><a target="_blank" href="http://commons.wikimedia.org/wiki/User:CrazyPhunk" role="link" rel="nofollow" class=" js-entry-link cet-external-link" data-vars-item-name="CrazyPhunk" data-vars-item-type="text" data-vars-unit-name="5b9e74a5e4b03a1dcc981301" data-vars-unit-type="buzz_body" data-vars-target-content-id="http://commons.wikimedia.org/wiki/User:CrazyPhunk" data-vars-target-content-type="url" data-vars-type="web_external_link" data-vars-subunit-name="before_you_go_slideshow" data-vars-subunit-type="component" data-vars-position-in-subunit="3" data-vars-position-in-unit="9">CrazyPhunk</a>)
7. Trade work for rent(07 of08)
Open Image ModalIf you have a skill a landlord needs, you might get a discount on your rent. My landlord rents a unit to a tenant who also serves as our maintenance guy. In exchange for doing the odd job, he gets $350 a month off his rent.But you don't have to be handy with tools. Landlords occasionally need people to maintain their website, design rental ads, or manage their properties. If you've got free time, offer to trade your services for a discount. (credit:Getty)
8. Turn a profit on your rental(08 of08)
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