In a real estate market with low inventory and high mortgage rates, getting out there as a buyer and trying to find a home can be daunting. However, if you can afford to purchase a home now, it might be worth your time to start investing in yourself and your future.
Let’s dive into a few reasons why purchasing a home now could be an excellent decision for you in the short and long term.
Building Equity
By purchasing a home, you can accrue home equity, which you can use in the future for down payments or other home purchases. Home equity is the difference between how much you still owe on your home’s mortgage and your home’s market value. As you pay down your home mortgage, the equity in your home grows. While it can take some time to build equity, think of it as a long-term investment for yourself and your future.
Home Appreciation
The value of your home will appreciate over time, making purchasing a home a fantastic long-term investment. While many are concerned about home values due to the current market, rest assured they are still increasing and appreciating, just at a more normal pace than we have seen previously.
Making improvements to your home and staying there for a long time will only make your home worth more money down the road and allow you to make a more significant profit.
Building Wealth
A home is likely the largest purchase you’ll make in your lifetime, making it one of the largest investments you will ever have. By purchasing a home, you are putting money into something you can use toward your and your family’s futures, adding to your personal and generational wealth. The more your home appreciates over time, the higher your resale value will be, which adds to your overall net worth.
Consider these factors if you’re considering buying a home instead of continuing to rent. If you have any questions regarding purchasing a home or the current market, reach out to us! We would love to answer any questions you may have!
