9 Reasons Buying a Home is Totally Worth It
09.15.2020 | Category: Homebuying
Living space is one thing that COVID-19 has made a lot of us think twice about. After all of the stay-at-home orders, social distancing and quarantining, you might be looking around your home and thinking, "Does it spark joy?" Thanks, Marie Kondo. And maybe somewhere in that conversation with yourself, your cat, or fellow quarantine mates, the idea of having your own condo / townhouse / home / cabin in the woods / tiny house on the beach has crossed your mind.
We know that for a lot of us the idea of homeownership feels like “adulting”, permanent and complicated. But it doesn’t have to be that way. And thanks to low down-payment home loan options and favorable first time home buyer programs, homeownership may be more attainable than you think.
If you’ve been debating buying, here are 9 reasons that buying a home is totally worth it.
1. You can build wealth through homeownership
Every month you make your mortgage payment, is not only another month that you're paying down what you owe, but it’s also a gain in your equity percentage in your home. It might help to think about this a little different way - think about your home as a giant piggy bank and mortgage payment like a long term savings plan. Every month that you make your mortgage payment, you’re putting money into the piggy bank - or expanding your equity position. As you build equity in your home, you’re also adding to your net worth.
2. Mortgage rates are low right now
Throughout the COVID-19 pandemic, mortgage interest rates have hit historic lows. Mortgage interest rates impact everything from your monthly payment to how much you pay in interest charges over the life of your loan. Bottom line, it’s never been cheaper to borrow money, and if you’re thinking of buying, it’s a great time to lock in a low interest rate mortgage.
3. You can customize to your heart's content
Buying your own home gives you the opportunity to make your space what you want it to be. Gone are the days of having to abide by rules in your lease or being confined to beige walls. Color, pattern, DIY projects large and small - the world is your oyster.
4. Take advantage of tax benefits
In most areas of the country, the tax code usually allows homeowners to deduct their mortgage interest from their tax obligation. For many this is a significant deduction, especially in the early years of owning your home when interest payments can be a large portion of your mortgage payment.
5. Build your community
According to a Harvard study, having a sense of community directly impacts our long term health and happiness. For many, an intangible benefit of purchasing a home is the sense of community that’s built when you have neighbors. It’s like a cool club membership, where you look out for one another, and have the opportunity to form long lasting connections regardless of age or demographics.
6. You never have to deal with the rent going up
The dreaded annual notice alerting you to a pending rent increase was the worst. You’d suddenly look around your apartment and think, is it worth this much? Should I move? Because there’s not a lot of consistency in the industry about how often and how much rental prices increase- it’s especially hard to plan year over year. Which leads us to…
7. More stability in your budget
Buying a home is a lot like locking in your rent price for an extended period of time. Even though you might see slight variations in your home insurance and property tax rate, for the most part you can control your monthly mortgage expense when you purchase a home. Gone are the days of having to deal with the whims of a landlord.
8. Your dog will love you even more
According to a survey published in 2017 one third of millennials said that a better yard for their dog was a major factor in deciding to buy a home. While we can’t say that your four legged family member should be your only consideration in the rent vs. buy debate, having a space that works for your entire family is important.
9. Your home can be your side gig
Whether it’s renting out a guest room, or deciding to rent your whole house short or long term, you’ve got options to turn your home into a side hustle. While many loan programs initially have rules about occupancy, and it’s important to check your local laws and regulations surrounding rentals, there’s plenty of opportunity to put your home to work for you.
When you’re ready, it’s worth it
While there’s no denying that buying a home is a major commitment, the emotional and financial benefits can be well worth the cost. If you’re ready to start exploring your buying options, give us a call at 1-800-24-RATESor start the process online at GET STARTED TODAY.