Friday, February 16, 2018

Why Buy

Buying More Affordable Than Renting In 54% Of US Counties

For most of us, the American Dream was a goal to work and save for. It still is.

However, something has changed. In many areas, it is actually more affordable to own than it is to rent – have a look at the report linked to this article.

So consider something…. If you buy now and get a fixed rate mortgage, you are protecting yourself from the inevitable rent increases and increases in the cost of buying a home. Let’s do that again. Prices for homes will go up. Rent will go up. Buy the house now, lock in your payment (PI) and you avoid rent increases of the future. You also increase your wealth as your equity in your home increases and your home appreciates. Seems like a good business decision – and a good personal one too!

Myths Holding Back Home Buyers

So, what holds people back from buying? A couple of absolute MYTHS actually.

Do you need a 780 credit score – NO. Do you need 20% down – NO.

There are all kinds of opportunities out there. If you truly want to be an owner and are motivated to be a homeowner – start the process – investigate what is out there for you. Waiting costs you money. Waiting is lost opportunity. Waiting may keep it from ever happening – I know people who have fallen into that trap.

Reasons Millennials Choose to Buy

There is no doubt that our future leaders – the millennials – are better educated than any generation before them. They have come of age and are buying.

There are reasons they are buying and there is much to consider. They are looking for control of their living space and a nicer environment. They are looking for security, flexibility, and more. They are looking to have more control over their own destiny. They are beginning to lead!

Millennials Deserve More Credit

Actually, the past few years have seen some very negative views about the millennial generation. Nevertheless, give them credit – they are saving, they are budgeting and they are investing. They are preparing for their future and the leadership role they will assume – as each succeeding generation does.

Hopefully, millennials do not lose sight that they can learn from the experience of the older generation and hopefully, the older generation will not lose sight of there is something new to be learned every day!

Benefits of Homeownership Beyond the Financial

Often we look at homeownership from an investment perspective. We look at the “forced savings’ concept, the locking in of a monthly payment rather than imminent rent increases and the tax savings – but there is more to it. Homeownership has many other benefits.

Homeownership has an impact on education, community involvement, health and freedom. There is a reason it is so often referred to as the American Dream – try it!

Renting or Buying, You’re Paying a Mortgage!

Besides the myths mentioned above, there are folks out there who are simply uncomfortable taking on a mortgage. But the thing is, unless you are living rent-free with family or friends, you ARE paying a mortgage – maybe not yours, but nevertheless a mortgage. Moreover, the person who has that mortgage is getting the benefits and the increased wealth.

Renting on a temporary basis is not bad – I am right now after XX years (I am not telling!) – but there are compelling reasons to be an OWNER. That does not mean you are destined to own a mansion – but you can own something that is affordable. Act on it!

Marriage or Mortgage?

It has been pretty much the tradition that marriage comes first and then the mortgage.

Last year, 57% of first time buyers were married couples. Yet, there is a significant number of unmarried buying for the first time – 16% of first time buyers is impressive!

Singles make up most of the rest of the first time group. It is all personal choice – whatever is right for you as a couple or a single. It gets back to the compelling reasons to buy – and invest in the future.

Wait Until Next Year Or Buy Now?

We have been so lucky that the buying opportunity has lasted this long. Nothing is forever.

Consider that home prices are going up. Interest rates have been moving higher. Both will probably continue.

So waiting until you have more money to put down is going to cost you and it likely will cost you more than you can save up! Think about that one. Saving at a loss – yikes!

Where Are Mortgage Interest Rates Headed?

Where are mortgage interest rates going? No clue actually. However, the trend is UP. Historically – rates are low and I believe they will continue to go UP. Examine the details in the article associated with this post. See what you think. My money is on UP!

Why a Professional When Buying a Home

Of course, I am going to suggest that you work with an expert when you buy a home. That is what I do. It is also why I have secured all the credentials and continue to do so.

When sick, we go to a doctor. When we have legal issues, we go to a lawyer. When going on a safari, we look to a guide. You did not expect that last comparison – did you?

Well, I am here to be your guide on a safari to homeownership. When do we leave?