If you’re a renter who’s been contemplating buying your first home, now may be the time to finally make that leap.
Why is homeownership a better option than renting? There are a few time-tested reasons that stand out:
- You build equity in an asset. This can occur in two ways. The first is through paying your mortgage on a monthly basis to pay down the principal on your loan. Secondly, if you purchase a property that appreciates over time, you’ll enjoy the equity that results from that appreciation, as well.
- Community involvement. Studies show that homeowners tend to be much more involved in their community and get to enjoy that interaction.
- Social benefits. If you have children in your household, studies show that they receive social benefits from living in a home that is owned rather than one that is rented.
- Tax benefits. There are tax codes that allow you to deduct some of the interest you pay on your mortgage. Be sure to consult a professional for more details on this.
Aside from these tried and true benefits of homeownership, there are also some current market conditions that make now the time to act. Interest rates are at near-historic lows, but they won’t stay that way for long. Since the election, they’ve increased a bit, and we can’t say for sure what’s going to happen in the future, but many predict that the new presidency will result in them rising further.
Additionally, there is a population trend affecting the marketplace. Millennials are now starting to purchase homes. As this age group moves through their buying cycle over the next several years, inventory is predicted to be under more and more pressure from these buyers. Acting now means avoiding this windfall of competition that’s just around the corner.
If you or anyone you know is thinking about buying their first home, doesn’t hesitate to reach out to me by phone or email. I’d be happy to help!