Why Now is the Best Time to Buy a Home

Buying a home can be a stressful and daunting decision. For most Americans, the choice will be the single biggest financial decision of their lives. For this reason, many choose to delay or forgo buying a home altogether. According to the United States Census Bureau only 36.5% of adults under the age of 35 own a home. However, buying a home is often much more financially and socially beneficial than renting. Home ownership helps build wealth and provides a stable environment for families. Interest rates are currently so low that this goal is attainable for almost anyone. Whether you're young or old, don’t make the mistake of not buying a home and miss out on the benefits explored below.

Financial Reasons to Buy a Home

Low Interest Rates

Current interest rates are approaching all-time lows. Low interest rates enable buyers to have lower monthly payments than renters. To predict exactly what will happen in the next few years with interest rates is impossible, but the current rates have almost never been better. This presents an amazing opportunity for buyers to lock into low interest rates and enjoy the stability of the same monthly payments for the next 30 years. Monthly rents, on the other hand, fluctuate and have been steadily increasing over the last several years.

Appreciation

Another possible benefit of home ownership is house appreciation. Over time, houses increase and decrease in value. When you are the owner of a home you can benefit from the increase in value of your home or suffer from the decrease in value of your home. No one can predict when houses will increase or decrease in value over the short term. However, historically homes have increased in value.

Equity

Equity is the portion of your home that you truly own as you pay off your loan each month. This monthly house payment acts as a savings account. Renters do not receive the benefits of equity in a home, because their monthly rent payment is gone forever.

Social Reasons to Buy a Home

Pride of Ownership

One of the many psychological advantages for homeowners is pride of ownership. When you own your own home, you are in charge. You don’t have to listen to your landlord because you are the boss now. If you want to make changes to your house, you are free to do so without needing permission from anyone. As you invest in upgrades make the house comfortable and custom to your needs, you add value to your own home. You can take pride in the hard work it requires to buy a home and then maintain its beauty. Without waiting for or relying on a landlord for repairs, you become self-reliant and build confidence and sense of worth.

Security

Families and especially children need security in order to truly thrive and have confidence in the future. Renters lack stability because they are not in control of their own home, as the landlord could at any time sell the house or decide not to renew the lease. In contrast, home ownership provides an environment where families control where they live and how long they stay. This allows families to make strong connections and friendships at school and in the community. Moving can be a traumatic experience for children and families and should not be taken lightly. The stability of owning your home allows you to take control and make the decisions that matter most.

Conclusion

Buying a home is an important and complicated decision, and thus people often procrastinate or avoid the decision. Many variables such as future plans for your career and family will make an influence on this decision. Even with variables, buying a home makes sense most of the time when you plan on being in one area for a few years. If plans do change and you must move, you can still keep the house and rent it out. Buying a home makes sense financially, as well as for stability and prosperity for one’s family.

The time is now to start preparing to buy a home. The first steps are saving money for a down payment and becoming eligible for a loan. The American dream is in reach and now is the time to make it a reality.