3 Reasons Why You’ll Win Big When You Buy a Home This Year
There are a number of good reasons to buy a house, and we've discovered more of them in the last year than we ever imagined. If you're a first-time homebuyer, getting your own place will provide you with a sense of stability and achievement in an otherwise uncertain time. If you're a repeat buyer looking for your dream home, relocating can provide you with the space or features you require to achieve greater success and happiness in your new normal life. Whatever your motives, there are three reasons why purchasing a home now will help you win big in the long run.
1. Buying a Home Is a Great Investment
According to some recent studies, real estate is still a strong investment, outperforming gold, stocks, bonds, and savings. What is the reason for this? Real estate will assist you in building equity, which is a form of forced savings that increases your net worth. According to ATTOM Data Solutions' latest Equity Report:
"The count of equity-rich properties in the fourth quarter of 2020 represented 30.2 percent, or about one in three, of the 59 million mortgaged homes in the United States. That was up from 28.3 percent in the third quarter of 2020, 27.5 percent in the second quarter and 26.7 percent in the fourth quarter of 2019, despite the ongoing economic damage caused by the worldwide Coronavirus pandemic."
2. Interest Rates On Mortgages Are Currently At Historic Lows
According to Freddie Mac's Primary Mortgage Market Survey, 30-year mortgage interest rates have dropped since November 2018, when they peaked at 4.94 percent. Freddie Mac's new forecast predicts that prices will stay strong, leveling off at an average of 2.9 percent in 2021.
When you buy a house with a low mortgage rate, it lowers your monthly mortgage payment, allowing you to get a bigger house for your money.
3. Investing in Your Future Pays Off
Some tenants have yet to buy a home because they are unable to take on the financial burden of a mortgage. However, many renters are unaware of the financial influence of equity.
As a homeowner, your monthly mortgage payment functions as a kind of "forced investment", which you can reinvest as you see fit later in life. It can be used for a variety of things, like paying for a loved one's education, upgrading to a larger home, or starting your own company. You are simply raising the landlord's equity rather than your own as a renter.
If you're ready to put your monthly payments to work for you and move closer to your goals and dreams, buying a home could be the best option, particularly as rental prices continue to rise.
Purchasing a home sooner rather than later may result in significant financial savings and long-term growth. Let's talk about whether homeownership is the best option for you this year.