Homeownership has been described as the cornerstone of the American Dream. The recession that happened in 2008 resulted in thousands of foreclosures.
The economy has since recovered and there is every reason to be optimistic. You might be thinking about buying a home but still on the fence on whether or not it is the right decision.
There are so many reasons why you should be buying a home and we’re going to highlight some of them.
Reasons Why Should Buy a Home
Prices Tend to Go Up Over Time
According to statistics, the value of homes has gone up by 6% on average in the last 20 years. This is despite the bubble that almost crippled the economy.
For someone that is thinking about buying a home, this is more than enough reason to go ahead with the purchase even if you’re not thinking about selling in the near future.
When you buy your home, you’re assured of putting your money in an investment that will appreciate in the years to come.
You Pay Less Tax
It is possible to deduct the interest on your mortgage on taxable income. Those that have just bought a home are the ones that tend to benefit the most out of the tax relief.
New mortgages attract high-interest rates and the more you can benefit from the tax deductions.
The Home is Yours
There are pride and a great feeling of satisfaction that comes with being a homeowner. You can forget about paying rent and lease agreement.
You can make modifications to the house without consulting anyone. It is also one of the greatest gifts that you can give your family.
You have the peace of mind knowing that there will always be somewhere to retrieve to when the world has been unkind.
Forced Savings
Not everyone is disciplined when it comes to savings but buying a home will force you to be disciplined. There are monthly contributions to be made without fail.
You should not consider the payments as a cost but savings. You get to reap the full benefits when you pay the mortgage in full.
Lock in the Price
This is another benefit of buying a home. You can lock in the price so that you’re not affected by anything that could happen in the future.
You’re assured that the monthly payments won’t change even if there is a significant shift in the prices of homes.
Inflation Hedge
Real estate has always been used as a hedge against inflation. You get to pay the same amount as a decade ago even when rates have skyrocketed. There is also a likelihood that the value of your home will go up as time goes by.
More Living Space
A home can’t be compared to a rented apartment. Most American homes have at least two baths. There is a backyard where the children can play. When you’re renting, you’ll have to work with the space that is available. It might feel crowded when you have a growing family.
If you plan to start a family, it will be time to start budgeting for a home. You just have to make sure that you’re getting the right real estate agent to help with the search for your dream home. You can find out more by doing research.
Buyers’ Market
Since it is a buyers’ market, it means there are a ton of options to choose from. You should not settle for anything less than the home of your dreams.
Make sure that you’re working with a local real estate agent to improve the chances of getting the home that you’re searching for.
Homes Have Become Affordable Again
According to the Economist, the last time homes were this affordable was in1991. Affordability is usually measured by the median income in a household and the current market rate for homes.
Mortgage payments are also another factor to take into consideration when checking the affordability of homes. It is the best time to buy a home if you’re been postponing the decision for a while.
You Could Get a Distressed Property
There is a chance you could get a distressed sell. The average discount is 35% for such a home. This will be a great deal and will shorten the repayment period.
This means money will be available for more urgent needs. Lenders don’t want to deal with the huge losses associated with foreclosures.
Make sure that you’re working with a reputable real estate agent if you’re to get the right property.
