There are so many great reasons to purchase a home, and over the past year, we’ve realised more of them than we ever thought possible. #covidyoudick...
If you’re a first-time homebuyer, having a home of your own can give you a greater sense of security and accomplishment in a time that’s largely uncertain. If you’re a repeat buyer looking for your dream home, making a move might give you the space or features you need to find greater success and happiness in our "new normal" way of life.
Whatever your motivations are, here are three reasons why becoming a homeowner now may help you win big in the long run.
1. Buying a Home Is a Great Investment
Several recent reports indicate that real estate is still a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Because real estate helps you build equity, a type of forced savings that grows your net worth over time.
2. Mortgage Interest Rates Are Low
Interest rates for a 30-year mortgage have fallen since November 2018. In the news this past week, Heartland Bank has a special rate of just 1.85% - when many were expecting rates to rise slightly this year, that happened!
We expect rates to remain low, possibly leveling out towards the end of 2021.
When you purchase a home at a low mortgage rate, it will positively impact your monthly mortgage payment, giving you the opportunity to likely get more house for your money.
3. Investing in Your Future Pays Off
There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. What many renters don’t realise, though, is the financial power of equity. While it can be a struggle to get a deposit together, the long term benefit outways that pain.
As a homeowner, your monthly mortgage payment becomes a form of ‘forced savings’ you can reinvest later in life as you see fit. You can use it in a variety of ways, like to fund a loved one’s education, move up to a bigger home, or start your own business. As a renter, you’re actually growing your landlord’s equity instead of your own.
If you’re ready to put your monthly payments to work for you and take steps toward those dreams and goals, purchasing a home may be the way to go, especially as rental prices continue to rise.
Buying a home sooner rather than later could lead to substantial savings and long-term financial growth.
Get in touch to determine if homeownership is the right choice for you this year.
Helpful and interesting info from Paul, and Harcourts to help you with your property journey.