In this blog, we will cover the benefits of buying a home now rather than delays and rent. I was asked this question this morning. In twenty years as a real estate professional, real estate investor, stockbroker, investment banker, mortgage broker, contractor, board-up service, landscaper, and pretty much any other profession that lends its support to the real estate business, I’ve been asked this question hundreds of times. We are getting conflicting advice on the benefits of buying a home now rather than delaying.
Benefits of Buying a Home Versus Renting and Paying Rent
Mortgage rates went from 2.5% a year ago to 7% today. No doubt rates are going to drop. And when it drops, it will be dropping big. There is still a shortage in the inventory of homes. When rates drop, demand for homes is expected to surge again. Home prices are cooling off now. Due to home prices cooling off, it is best to take advantage of the housing market pause and own part of the American Dream of Homeownership.
When rates drop in the coming months, you can expect the housing price surge to continue. We will explain our ideology on why there are benefits of buying a home now rather than waiting. So, should I buy and why should I execute a real estate home purchase contract now when things are so uncertain? Read on……
What are The Benefits of Buying a Home Rather Than Renting
Real estate values have been increasing throughout the nation. Many parts of the country, especially many counties in Florida, Georgia, Texas, California, New Jersey, Maryland, Colorado, Indiana, Michigan, and Illinois have seen double-digit appreciation since 2013.
Mortgage rates have been the highest since 2008 and are expected to increase. The economy is very uncertain. With inflation off the charts, mismanagement, and soaring interest rates, the mortgage industry is in chaos. In this article, we will discuss and cover the benefits of buying a home Now Rather Than Delaying.
The Nation’s Economy and Housing Forecast
The Trump Administration is due credit for the strong economy. The nation’s economy today is not too healthy. Inflation is soaring at a historically alarming rate. Housing prices have gone up 50% in the past three years.
There is still a major supply chain shortage from this coronavirus outbreak scare. The Federal Reserve Board has increased interest rates to put the brakes on the fast-growing economy to avoid inflation. The right-hand rule is if interest rates rise, home sales decrease. This is not the case.
Is It Smart To Buy a House Now Rather Than Wait?
Mortgage Rates are high but the demand for home sales has been stronger than ever. There is still a major housing shortage of inventory while the demand for housing is high.
Benefits of Buying a Home Versus Renting and Paying Rent
Many potential home buyers who were planning on buying a home in a year or two are now realizing the benefits of buying a home now rather than later. From 2021 into 2022, the home-buying spree was out of control throughout the nation. Homes were sold over 10% list price. Now is the time to purchase a home. Demand for homes is still strong.
Home sales has pulled back due to high rates. When rates drop, home prices is expected to surge again. Another positive news is the launch of non-QM loans. There is no waiting period after bankruptcy and housing event to qualify for non-QM loans. When asked, I’ve always given measured, logical answers; paying rent vs. a mortgage payment, writing off the interest on taxes, it’s a good investment, etc.
Benefits Of Buying A Home & Reasons To Purchase Now
I took a couple of minutes and reflected on my own personal top five reasons why I enjoy homeownership. In 2009 when the real estate market was in dire straits, I was thinking of selling my home and moving into a smaller home with a lower
mortgage payment. I discussed it with my family. My daughter, in kindergarten at the time, told my wife and me that she really liked her room and didn’t want to move.
Why Making Your Home Personal and Comfortable Is Important?
It really hit home and struck me how important and personal a home is to each person that lives in it, especially children. It’s where they grew up, where they spent the holidays, where they had their birthday parties. It’s not just a piece of property, it’s a home. In January I decided to finish my basement. My son, a sophomore in high school agreed to help.
We designed it together. It was a little unnerving how much attention he paid to the bar area, but he had some good ideas and we used them. We put together a list of materials and got to work. We did a little each weekend. We spent time together. We talked about sports, the future, and family history. We finished it all ourselves.
Benefits of Home Ownership
Took a million pictures, created some great memories, and passed on to him some do-it-yourself skills my dad taught me. Hopefully, he can pass them on to his children in his home someday. Pride in ownership.
Homeowners can feel proud of themselves for working so hard to earn the financial ability and means to become a homeowner. Driving down the street you can see houses of all shapes and sizes. Some have well-manicured lawns and flower beds.
Belonging To a Close-Knit Community Forming Lifelong Friends
Many families make very close friends with their neighbors and become inseparable. This holds true for families with younger children. Buying a home is not just buying a piece of property. You gain so much more that no money in the world can replace. You watch your kids grow up with neighboring children. Memories are formed that last a lifetime.
Others are overgrown with toys and other debris all over the place. As part of my daily routine, I do one small thing around the house each day. Whether it be cleaning some fingerprints off the door or taking the weekend to power wash the deck. Not hard work. Just steady attention. It gives me a personal feeling of accomplishment and our home stays in tip-top condition.
The Joys and Pride of Home Ownership
I’ve had friends and family come by and ask for the number of my handyman and my landscaper. A nice compliment. Mealtime. My mom recently stayed with us for about a year. She cooked every night (my wife loved it) and the meals took me back to our kitchen table in the home where I grew up.
Five kids ate as fast as they could so they could grab that last pork chop. My brothers, sister, and I still talk and laugh about it. The kitchen is where we spent most of our family time in my youth and where we still do today with our family. The preparation and the meals are a time to talk about your day, or in many cases forget about your day.
The Memories, Joy, and Pride of Owning Your Own Home Versus Renting
Get creative and experiment. Last week we made a huge pot of pasta sauce and the kids came up with some interesting ingredients. As the dad, I have veto power over anything too creative. The idea is to get everyone involved, share, and have fun. All these things are a great part of homeownership and make owning a home part of the fabric of our lives and memories. A word of caution. Don’t buy more than you feel you can afford comfortably
All of the above-mentioned joys of homeownership are tarnished if you have to struggle to make house payments. Small house, big house, medium house. They’re all equal in the eyes of a child. It’s their future, their values, and the character you’ll be building over the decades of homeownership. If you have any questions about this blog or any other mortgage or real estate-related topics, please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at firstname.lastname@example.org. The team at Gustan Cho Associates is available 7 days a week, evenings, weekends, and holidays.