Professionals in the industry say that the current housing marketing is the best time to buy a home. If you rent and are thinking about buying, now is the time. Owning a home vs renting is extremely beneficial. Rocket Homes℠ CEO Doug Seabolt gives five ways owning a home is beneficial.
1. As home prices climb, buying a home builds wealth.
Owning a home is not just a place for you to live but is also an investment. As your home value appreciates, so does your equity. If purchased a home for $200,000 and it has appreciated to $300,000, the money you will earn when you sell your home is the equity which is $100,000.
“One of the single biggest benefits of homeownership is it builds wealth,” Seabolt said. “A recent study released by the National Association of REALTORS® showed that homeowners over the last 10 years have built a net worth of about 40 times that of non-homeowners through the appreciation of home values.”
2. Homeownership protects against rising rent.
Renting can wreak havoc on a budget in today’s market. Why? The rent prices are on the rise so it is difficult to know what your rent will be when your lease runs out. If you own a home, your monthly payment remains steady.
“It’s easy for home buyers to fixate on the interest rate while deciding if this is a good time to buy a home, but the best number to keep in mind while budgeting is the overall monthly mortgage payment,” Seabolt explained.
3. Promotional offers help put a down payment within reach.
A down payment can be a factor for some renters making the leap to homeownership. For example, Rocket Mortgage and Rocket Homes offer a program called BUY+, which helps people buy homes because you could get up to $10,000 toward closing costs from Rocket Mortgage. So, don’t assume that buying a home is out of reach – you may just need to spend more time exploring your options!
4. Homeowners may be able to benefit from tax deductions.
You can reduce your tax liability with tax benefits given to homeowners. Home mortgage interest or property taxes can be deducted. Remember it’s important to consult an accountant to better understand the specific limits or exceptions that may apply, these benefits can add up significantly over time, providing valuable savings that can help offset some of the costs of being a homeowner.
5. No landlord means more opportunities to showcase your style.
You can’t just go in as a tenant and repaint a landlord’s property. Some landlords will give you permission to do this such as paint, but you will more than likely have to paint it back to the original color. When you own a property, it is yours and you can decorate and showcase your style the way you want to.
“It’s yours!” Seabolt said. “If you want to put green shag carpet on the walls, do it – they’re your walls! While it might not be advisable, you and you alone make the decision of what to do with your home.”
Although those in the industry say it is a good time to purchase a home, this does not mean it is the best time for you. It will depend on your current circumstances and the phase you are in in life.
“The bottom line is, the best time to buy a home is when someone is financially and emotionally ready for the experience,” Seabolt said.