Many home buyers are wondering: Is buying a house worth it right now? The short answer is yes. If you are financially ready, buying a house is completely worth it – even in the current market. Buying and owning a home is still a good financial investment and is better than renting for many people.
While there are financial challenges in the current market, there are plenty of reasons to buy. If you or someone you know is on the fence about buying a home, keep these things in mind:
- Rising prices lead to equity
The main benefit to owning a home is over time your home builds equity. This adds to your overall net worth. The ability to build equity is what sets homeownership apart from renting, where there is no return on investment. Even though home values are not increasing at the pace they were, they are still going up and the balance is being paid down.
- Fixed housing costs
When you purchase a home, your monthly principal and interest payment will remain the same for the entire life of your loan. While rents are increasing at near record levels, buying real estate will help keep your payment fixed.
There are many opportunities for homeowners.
- Home ownership allows you to customize your home the way you want, unlike an apartment that will not allow for personalization.
- You may qualify for tax advantages for mortgage interest paid on your loan. It is best to consult a tax advisor to see if this would benefit you.
- Build a stronger credit rating and improve your credit score if you finance a mortgage and make timely payments.
Purchasing a home is not the right move for everyone. There are downsides to home ownership in any market. One thing to be mindful of in our current market is there is not a guarantee your home will continue to increase in value at the rate properties have over the last few years. Home value appreciation is likely to slow down but will not go away.
When deciding to buy or rent, it is good to compare monthly rent versus a mortgage payment. If the mortgage payment would be approximately the same or less than rent for a similar home, it might be a good idea to take a serious look at purchasing.
It is a good idea to consult with a mortgage lender and a real estate agent to see what options are available that meet your situation. We provide free consultations for pre-qualification. Feel free to contact us and see if buying a home is the right decision for you.