3 Benefits to Buying Your Dream Home This Year

Dated: 01/12/2020

Views: 133

3 Benefits to Buying Your Dream Home This Year | MyKCM

Outside of a strong economy, low unemployment, and higher wages, there are three more great reasons why you may want to consider buying your dream home this year instead of waiting.

1. Buying a Home is a Great Investment

Several reports indicate that real estate is a good investment, topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps build equity, a form of investing for you and your family. According to CoreLogic’s Equity Report,

“U.S. homeowners with mortgages (roughly 64% of all properties) have seen their equity increase by a total of nearly $457 billion since the third quarter 2018, an increase of 5.1%, year over year.”

This means the average homeowner gained approximately $5,300 in equity over the past year. If you want to start building your equity, put your housing costs to work for you through homeownership this year.

2. Mortgage Interest Rates Are Low

The Primary Mortgage Market Survey from Freddie Mac indicates that interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest forecastFreddie Mac expects rates to remain low, leveling out to a yearly average of 3.8% in 2020.

When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to buy more house for your money.

3. Investing in Your Family is a Win

There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you’re living rent-free with your parents, you’re paying a mortgage – either yours or that of your landlord.

Today, rental prices continue to increase, and when you’re paying your landlord’s mortgage instead of your own, you’re not the one earning the equity. As an owner, your mortgage payment is a form of ‘forced savings’ you can use later in life to reinvest in your family. You can use it for a variety of opportunities, such as saving for your children’s education, moving up to a bigger home, or starting your own business. As a renter, it can be more challenging to achieve those types of dreams without home equity working for you.

Bottom Line

Buying a home sooner rather than later could lead to substantial savings and long-term financial growth for you and your family. Let’s get together to determine if homeownership is the right choice for you this year. Start your search right here, and let's talk. 

Blog author image

Sheri Fejeran Jennifer Fejeran Farrell

“The Market Changes … Our Values Don’t” is the guiding principle of doing business for the Beach Cities Real Estate Team. Boasting over 20 years of experience in real estate and being a consis....

Latest Blog Posts

Three Things to Understand About Unemployment Statistics

Three Things to Understand About Unemployment StatisticsTomorrow morning the Bureau of Labor Statistics will release the latest Employment Situation Summary, which will include the

Read More

Why This Summer Is the 2020 Real Estate Season

Why This Summer Is the 2020 Real Estate SeasonWith stay-at-home orders starting to gradually lift throughout parts of the country, data indicates homebuyers are jumping back into

Read More

The Shocking News in the Unemployment Report

Last Friday, the U.S. Bureau of Labor Statistics released their May Employment Situation Summary. Leading up to the release, most experts predicted the unemployment rate would

Read More

Real Estate Will Lead the Economic Recovery

With more U.S. states reopening for business this summer, and as people start to return to work, we can expect the economy to begin improving. Most expert forecasts indicate this economic recovery

Read More