There are so many great reasons to purchase a home, and over the past year, we’ve realized more of them than we ever thought we would. If you’re a first-time homebuyer, having a home of your own can give you a greater sense of security and accomplishment in a time that’s largely uncertain. If you’re a repeat buyer looking for your dream home, making a move might give you the space or features you need in this new crazy normal way of life. Whatever your motivations, here are three reasons why becoming a homeowner now may help you win big in the long run.
1. Buying a Home Is a Great Investment
Real estate is still a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps you build equity, a type of forced savings that grows your net worth (remember this, we’ll come back to it later. No quizzes though, I promise). According to data experts, one in three mortgaged homes in the US is considered equity rich, despite the current economic climate.
2. Mortgage Interest Rates Are Low
It’s true that interest rates for a 30-year mortgage have continued to fall since November 2018 when they hit 4.94%. In fact, rates are forecast to remain low, leveling out to an average of 2.9% in 2021. Fantastic, right?
How does this benefit you? When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to likely get more house for your money.
3. Investing in Your Future Pays Off
There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. What many renters don’t realize, though, is the financial power of equity. Remember this from up top? Let’s spend a hot second on that.
As a homeowner, your monthly mortgage payment becomes a form of ‘forced savings’ you can reinvest later in life as you see fit. You can use it in a variety of ways, like to fund a loved one’s education, move up to a bigger home, or start your own business (and more!) As a renter, you’re actually growing your landlord’s equity instead of your own.
If you’re ready to put your monthly payments to work for you and take steps toward those dreams and goals, purchasing a home may be the way to go, especially as rental prices continue to rise.
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth. Let’s connect to determine if homeownership is the right choice for you this year.