If you're thinking about moving out of a home you own, why not consider renting…
There’s no doubt that deciding to buy a house is a major decision. Renting a place works for a while, but at some point, most of us yearn for our own home. Upping your financial game aside, owning your home represents a lifestyle change that’s up there with finishing college and having a child.
There’s much to consider before jumping into the home pool. Do you think you’re ready?
Interest Rates Are Rising
The national average home mortgage interest rate this week is 5.36%. Last week, it was 5.27%. In April 2022, it was 4.02%. October of 2021 saw an average interest rate of 3.09%.
Do you feel it? Rates are rising and the forecast is that they’ll continue to rise throughout 2022. Don’t be pressured into dipping your toes into real estate if you’re not interested or ready right now, but if owning your own pad is something you’re thinking about in the near future, be mindful of those interest rates.
Home Prices Keep Going Up
You may be surprised to know that rising mortgage interest rates are not deterring most who are in the market to buy a house. Buyer demand hasn’t slowed much and experts estimate that inventory is still less than half of what it was pre-pandemic.
That means home prices will keep rising as long as demand is high. Home prices rose 18.7% in 2021. Competition is still brisk, so don’t wait to bid on that cute property you’ve had your eye on.
Equity, Equity, Equity
Increased home equity adds to your net worth. The longer you stay in your property the more equity you earn. As your home value increases, so does the equity.
Of course, factors such as your purchase price and market conditions will affect how quickly and how much your home equity will rise, but if you’re currently renting, you’re earning zero back.
Go buy a house. Sooner, not later.
Rent Is Rising
Newsflash: Your landlord will raise your rent whenever there is opportunity and he or she may create an opportunity in absence of one. That’s not to say all landlords are jerks, but why on earth would you line their pockets rather than your own?
Owning your own home gives you stability. Your monthly expenses are mostly fixed and no one but you is going to put you out of your own place. Plus, if you own your own place, you can upgrade it whenever and however you want.
The Bottom Line
These are only a few of the benefits of home ownership. Being part of a secure community, investing in your family’s future, owning a pet, and privacy are a few more.
Owning a home is not for everyone, but if you’re considering the leap into property ownership, do it now rather than later. Buy a house! You won’t regret it!