Owning a home is part of the storied “American Dream” but it’s more than just a dream. Becoming financially secure is an important goal for many people today. Homeownership is one of the best ways to help achieve that goal as it works hand in hand with your personal net worth. Are you considering making the move from renting to buying? Let’s take a look at a few of the benefits of homeownership.
Consistent Monthly Payments
Are you tired of your rent increasing and you have little to no control over the amount? Rents have been rising aggressively over the decades. Buying a home means consistent monthly payments for the long term. Homebuyers can lock in their mortgage rate for 15-30 years and have a set monthly payment. Typically, the only change would be if you choose to refinance and change the terms of your loan. With interest rates being at all time lows, you may be able to find a mortgage for less than what you would usually pay in rent.
Build Your Wealth
When you buy a home, you start to create equity in your investment, your house. As home values increase and you make monthly payments towards your mortgage, your equity begins to increase. Your equity in return increases your net worth. As renting does not provide any ownership stake in the property, there is no equity to grow. Therefore, renters have substantially lower net worths than homeowners.
Homeowners can make changes to the design and upgrades whereas renters typically cannot. According to a recent study by Lending Tree, 63% of people listed flexibility to do what they want to the space as a reason to own a home. With the popularity of home improvement shows, many people want the chance to put their own design touch on their space.
With rents continuing to rise across the country, renters should consider if now is the right time to buy. Owning a home provides one of the strongest foundations for building individual wealth and lasting financial security. Contact Arrive Real Estate Group today to take advantage of the perks of homeownership and start building your net worth.