There are many people thinking about buying a home, but with everything affecting theeconomy, some are wondering if its a smart decision to buy now or if it makes more sense to wait it out. As Bob Broeksmit, President and CEO of theMortgage Bankers Association(MBA),explains:

The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.

If youre in that position, remember that its important to consider not just whats happening today but also whatbenefitsyou may gain in the long run.

Theres a lot of information out there about how homeownership helps build a homeowners net worth over time. But even today, many people think first about things like 401(k)s before they think of owning a home as a wealth-building tool. Its especially important if youre a young prospective homebuyer to understand how homeownership is another key way to invest in your future. An article fromBloombergnotes:

Millennials have higher average 401(k) balances than Generation X did when they were the same age,but theyre not any better off financially. . . . A lot of that has to do with being less likely to own a home.

To help you understand just how much owning a home can have a positive impact on your life over the years, take a look at what the data shows. The sameBloombergarticlehelps show the gap in wealth between renters and homeowners who are 65 years and older (see graph below). The difference is substantial, even when incomes are similar.

So, if you want to create wealth to help set you up for success later on, it may be time to prioritize homeownership. Thats because, whether you decide to rent or buy a home, youll have a monthly housing expense either way. The question is: are you going to invest in yourself and your future, or will you help someone else (your landlord) increase their wealth?

Bottom Line

Before putting your homeownership plans on hold, reach out to a real estate advisor to go over your options. That way, youll have expert advice on how to make the best decision right now and the best investment in your future.

When you are ready to buy or sell your next home, please call me Marie McLaughlin, 727-858-7569.

Source:https://www.keepingcurrentmatters.com/2022/12/08/homeownership-is-an-investment-in-your-future/