Homeownership Is an Investment in Your Future
With all the uncertainty in the economy right now, many potential home buyers wonder if it’s a smart decision to buy a home now or if it makes more sense to wait a year or two for things to settle down before making a move. If you’re in that position, it’s important to consider not just what’s happening today but to consider the long term benefits that homeownership delivers.
Even with all the historical data that demonstrates how homeownership helps build a homeowner’s net worth over time, some buyers are still unsure what steps to take to build a secure financial future.
In a recent article Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), stated:
“The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”
To help you understand just how much owning a home can have a positive impact on your life over the years, take a look at what the data shows. This recent Bloomberg article shows the wealth gap between renters and homeowners who are 65 years and older (see graph below). The difference is substantial, even when incomes are similar.
If you want to create wealth and set yourself up for success in the future, it may be time to prioritize homeownership. Remember, whether you decide to rent or buy a home, you’ll have a monthly housing expense either way. The question is: are you going to invest in yourself and your future, or will you help someone else (your landlord) increase their wealth?
Before putting your homeownership plans on hold, let’s connect and review your options. It’s possible, even in the current market, to purchase an affordable home. The key is to review your current situation and formulate a plan that puts you on the path to homeownership.
Check out our First Time Buyer Guide for more information.