Is homeownership the best way to secure your financial future? Today I’ll discuss my thoughts on the topic.
I’ve worked with many first-time homebuyers who were purchasing a home, and the No. 1 factor they always look at is how their current monthly rent payment compares to their future mortgage payment.
This is an extremely smart comparison to make, but what people often don’t pay attention to is the future value of their home—how much will their home appreciate in our market?
It was extremely exciting to be able to help clients purchase homes with monthly payments they were comfortable with back when the market crashed. Those clients we helped in the past are now seeing how much equity they have in their home, and they feel like they’ll have more future financial security than they ever had before.
That security comes from appreciation. A home they bought for $130,000 just a few short years ago could now be worth $40,000 more.
In my experience, about 90% of the people who have large windfalls of money do because they bought real estate at the right time or because they bought real estate and continued to stay in that property long enough to pay down their mortgage.
The awesome thing about real estate is that it can improve your financial future over the long-term. When you’re making a monthly payment on your home versus paying rent, you’re setting yourself up to one day be free of both kinds of monthly payments. On top of that, you’ll have been building your net worth because you’re paying down your debt.
If you have any other questions about buying or investing in real estate, feel free to give us a call or send us an email. We’d love to help.