Three Benefits to Purchasing Your Dream Home This Year
Besides a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to think about buying your dream home this year instead of waiting.
1. Buying a Home is a Great Investment
Numerous reports indicate that real estate is a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps build equity, a form of investing for you and your family. According to CoreLogic’s Equity Report,
“U.S. homeowners with mortgages (roughly 64% of all properties) have seen their equity increase by a total of nearly $457 billion since the third quarter 2018, an increase of 5.1%, year over year.”
This means the average homeowner gained approximately $5,300 in equity over the past year. If you prefer to start building your equity, then put your housing costs to work for you through homeownership this year.
2. Low Mortgage Interest Rates
The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest forecast, Freddie Mac expects rates to remain low, leveling out to a yearly average of 3.8% in 2020.
When you purchase a house at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to buy more house for your money.
3. It's a Win to Invest in Your Family
There are some renters who haven’t purchased a home yet, because they are reluctant and uncomfortable to take on the obligation of a mortgage. Everyone should realize that, unless you’re living rent-free with your parents, you are paying a mortgage – either yours or that of your landlord.
Today, rental prices continue to increase, and when you are paying your landlord’s mortgage instead of your own, you are not the one earning the equity. As a homeowner, your mortgage payment is a form of ‘forced savings’ you can use in the future to reinvest in your family. You can use it for an array of opportunities, such as saving for your children’s education, moving up to a bigger house, or starting up your own business. As a renter, it can be more challenging to achieve those types of dreams without home equity working for you.
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth for you and your family. Contact a Licensed Real Estate Agent to determine if homeownership is the right choice for you this year.