Is it Time For me to Buy?
When Is the Right Time?
One question is on the minds of many potential home buyers: When is the right time economically to buy a house? Even though there have been huge spikes and dips in the housing market over the last 40 years, a linear appreciation rate of 4.5% has remained constant. If you think about long-term housing, the question of appreciation is irrelevant. If it is a long-term investment, it will appreciate over time.
Life happens and changes occur. Yes, there are better economic times to buy a home, but your current financial place in life is what truly matters. The decision really comes down to is it the right time for you? Will this loan add stress to your finances? Do you expect any downturn in your future income security? Options Financial Residential Mortgage will work with you to lay out your financial boundaries and build a successful plan for your future.
The Switch from Renting to Buying
Until now, circumstances may have made renting a house the best option for you. Renting can take precedence over buying for multiple reasons.
- Was your location temporary?
- Was your credit score too low to apply for a home loan?
- Did you lack the down payment?
- Did you need less space?
- Did you not realize you were able to buy with a similar payment?
Renting a home puts you at a financial disadvantage. You are ultimately not in control of the property. You are not earning any equity or gaining tax benefits.
It is time to invest intelligently in your financial future
You are now looking into buying a home and building up equity. You feel a new sense of security that was not present before. You know that as long as you sustain financial responsibility, your house cannot be taken from you and your payments will never increase. You are in control. Even if you start small, purchasing real estate is a good (or great) financial investment.
Advantages of buying a home vs. renting a home:
- Cost comparison – your money is not being thrown away
- You have tax advantages through homeownership
- Appreciation of your home over time
- Your equity growth
- The freedom of choice – sweat equity stays in your pocket
We can help you remove the complexity of the math problem. We will help you to see how the budget of annual increasing rent payments, added to a mortgage tax deduction, could make a home possible. Please call our team for help.