If you’re a renter, you’ve probably heard lots of people saying that now is the time to buy. As a Realtor®, I firmly believe that the best time to buy is when you want to buy, but if you’ve been thinking about it and aren’t sure you’re ready, here are a few reasons why it makes sense to make the move now.
Although prices have risen substantially since the market hit bottom, they still aren’t back up to the historic highs of 2005 and 2006. Buying now means that as prices continue to rise, you’ll build equity even faster than you would just by making your regular mortgage payment. Home equity is a huge financial asset when it comes time for retirement, so by buying a home, you’re essentially putting yourself on an automatic retirement savings plan. Historically, real estate appreciation has outpaced inflation, so even if you aren’t thinking about retirement yet, Future You will definitely be grateful to Current You if you buy now.
What’s even better news is that mortgage rates are still the lowest they’ve been in the last 40 years, so buying now keeps your interest rate low no matter what rates may do in the future. That means that over the life of your loan, you’ll pay less than you would if rates were higher. Keep in mind also that no matter what prices and rates do, you get to deduct your mortgage interest on your taxes, which reduces your taxable income. By continuing to rent, you’re putting all of that money in your landlord’s pocket when it could be going into your own.
Most of all, though, when you buy a home, it’s yours. Paint the walls red if you like, and no one will say a word (except maybe your significant other, but that one’s on you). Have a bunch of dogs or cats (or maybe both). Live with whoever you want. You have to live somewhere, after all, and you want to live somewhere that makes you happy to come home. Why not buy a place and have the freedom to make it truly your own?