There are many benefits to owning your own home. Even so, many renters are still on the fence about whether homeownership is right for them. Here are 3 reasons to seriously consider buying a home:
1. Build Wealth with Home Equity
Did you know the net worth of a homeowner is over 40 times more than someone who is renting their home? When you own a home, you build wealth through what is known as equity. Home equity is the difference between how much you owe on your mortgage loan and how much the home is worth. As you pay down your mortgage—and as home values increase—you are building equity.
Here’s an example: Let’s say your house is valued at $300,000 and you only owe $200,000 on the loan. That means you have $100,000 of equity. If you were to sell your home, that $100,000 would be yours to keep. And, as long as that home was your primary residence for at least two consecutive years, that $100,000 would also be tax-free.
You can also access your equity by refinancing your home. When used properly, refinancing can be a great move to leverage your home equity and build wealth.
2. No More Rising Rental Payments
Rising home values have gotten lots of press lately, but have you seen how much rent has increased? Rental rates have risen at an astonishing pace, and many people are struggling to keep up with monthly payments. With average monthly rental payments at record highs, renters can often find themselves in a tough position.
When you purchase a home of your own, you won’t have to worry about your monthly payment increasing. Your mortgage payment is determined when you take out the loan and remains the same until you pay it off. In addition, interest rates are still low, which means you can lock in a great rate on your mortgage when you purchase a home. However, interest rates are beginning to rise, so it’s best not to wait if you’re considering buying a home.
3. Customize Your Space
Another exciting reason to consider buying a home is the opportunity to decorate and remodel however you’d like. In your own home, you have the freedom to paint the cabinets, knock down walls, change the flooring and customize your space any way you’d like. Most rental properties limit what you can do with the space, and won’t allow you to make significant changes like these. The ability to create a space reflective of your personality is a significant benefit to homeownership.
Are You Convinced?
Renting a home is often a necessary step on your journey to owning your own home. And while homeownership comes with a number of benefits, it can be an overwhelming process if you don’t know where to start. The Dream Homes by Jen team is your trusted resource for everything real estate. If you’re ready to enjoy the freedoms that come with homeownership, we are here to make it a reality! Contact us today to get started.