Why Buy a Home Now Instead of Later?
Seven reasons why you shouldn’t wait to buy a home in this market.
Most buyers in the market are taking a wait-and-see approach because interest rates are high and home values are appreciating quickly. However, is this the right move? If you’re a homebuyer, here are seven reasons why it’s counterproductive to hold off on buying a home:
1. Buying now means you can lock in your monthly payment. If you’re renting, your landlord can raise your rent when your lease is about to expire. Buying a home now, on the other hand, lets you lock in your monthly payment.
2. You can start building wealth. You’re still paying the mortgage whether you buy or rent. However, when you buy your own home, you can start building your wealth instead of your landlord’s.
3. Inflation is currently high. Buying a home can be a great investment to keep up with inflation. Historically, real estate appreciation outpaces inflation. You don’t have to invest much for the down payment, but you benefit from the appreciation of the entire home value.
"When you buy a home, you can start building your own wealth instead of your landlord’s."
4. Home values have increased significantly. If you're looking to move to a larger home, you’ll benefit from more appreciation on a higher-priced property. For example, if you currently own a house that is worth $150,000 and home values go up by 8% in the next year, your net worth will increase by $12,000. However, if you sell and buy a home that is $300,000 worth and home values go up by 8%, your net worth increases by $24,000.
5. Interest rates are increasing. Rates are going to continue to go up throughout the year, according to the Federal Reserve. If something changes and rates go down, you can always refinance your house.
6. Homes are getting more expensive. With home values and rates going up, homes will become more expensive every day that you wait.
7. Consider the lifestyle changes you have to make. If your current home no longer fits your lifestyle and you’re looking to move to a property that can satisfy all your needs, then don’t wait to make that move. Your home is your sanctuary and should be a place that makes you happy.
Buying a home is a big decision to make, but if you don’t do it now, you may end up with more losses in the long run. If you have any real estate concerns or questions, don’t hesitate to call or email me. I’d be happy to help!
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