Updated: Jan 18
Buying a home is a big step in your life and it should be carefully considered. You want to make sure you’re making the right decision. There are however many benefits that come with home ownership. Here are 6 benefits of owning a home.
1. Start building wealth- If you’re renting, you are literally throwing your money away! The sooner you own a home, the sooner you can start building your wealth. A piece of every mortgage payment will go into the equity of your home, which depending on the market, you can hopefully cash in on in the future. You can think of it as kind of a forced savings account for retirement.
2. No landlords- When you own your home, you don’t have to worry about landlords telling you what you can or can’t do to your home. You’re in control and you get to make the decisions. You can alter the back yard, change the flooring, hang as many pictures as you want or even adopt 3 dogs if that’s what you want to do!
3. Become a landlord- Not only do you make the decisions when you own your home, you can also become the landlord. Whether you want to rent an extra room in your home to a friend, or purchase another home and use the first one as a rental, you are setting yourself up for a second income in the future.
4. No rent increases- The amount you pay in rent each month can depend on the rental market in your city. The same isn’t true for a fixed mortgage. Your monthly principal and interest won’t go up because the housing market is going up. You may see slight increases for home owner’s insurance or property taxes but never an increase in your fixed mortgage because the housing market is on the rise.
5. Low interest rates- Interest rates are still low, but we don’t know for how much longer. It may not seem like a big deal if interest rates go up just 1%, but over the course of a 30-year loan, you could be spending an extra $30,000 in interest! Talk to a lender today and they can help you start the process.
6. Prices on the rise- The housing market isn’t an exact science but we can make predictions based on current and past trends. Due to lower inventory, home prices are estimated to continue to rise in 2020. If you’re thinking about buying, don’t wait. Talk to a real estate professional today!
The Desert Duo
Guiding Arizona Home
Michelle Morton & Sadyna Reino