Thinking about buying a home? While todaysmortgage ratesmight seem a bit intimidating, here are two solid reasons why, if youre ready and able, it could still be a smart move to getyour own place.
1. Home Values Typically Go Up Over Time
Theres been some confusion over the past year or so about which wayhome pricesare headed. Make no mistake, nationally theyre still going up. In fact, over the long-term,home pricesalmost always go up (see graph below):
Usingdatafrom theFederal Reserve(the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didnt follow the normal pattern, but generally, home values kept rising.
This is a big reason whybuying a homecan be better thanrenting. As prices go up and you pay down your mortgage, you buildequity. Over time, this growing equity can really increase your net worth. TheUrban Institutesays:
Homeownership is critical for wealth building and financial stability.
2. Rent Keeps Rising in the Long Run
Heres another reason you may want to think about buying a home instead of renting rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, youre likely to feel the squeeze of your rent getting higher. According todatafromiProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):
So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.
Your housing payments are like an investment, and youve got a decision to make. Do you want to invest in yourself or keep paying your landlord?
When you own your home, youre investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.
As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at theNational Association of Realtors(NAR), says:
If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.
Bottom Line
If you're tired of your rent going up and want to explore the many benefits of homeownership, call me, Marie McLaughlin 727-858-7569 toexploreyour options.
Source:https://www.keepingcurrentmatters.com/2024/05/01/the-perks-of-buying-over-renting/
