#1 Your home will appreciate – Yes, home values fluctuate, but over time home prices have always gone up. How much appreciation can you expect? Home prices have appreciated at an average rate of 3-5%/year. On a $300,000 home @ 4%, your home would appreciate $12,000 in the 1st yr. In 10 short years, your home would appreciate $120-$150,000. After 30 years, it will most likely be valued at more than double what you initially paid for it. When it comes time to retire, you can sell that home, pay cash for something smaller & put the leftover cash into a safe investment cushioning your retirement. To put it simply, buying a home will build valuable equity that will drastically increase your net worth.
#2 Rent increases while your mortgage payment stays the same – Each year rent can increase anywhere from 3-5%. So, after 30 years, your monthly payment for rent will most likely be more than double of what you are paying today. When you buy a home, you’ll lock in your monthly payment which means for 30 years your payment will not increase. Since you’ve got to live somewhere, & you’ll most likely have a monthly payment anyway, you might as well be paying something off. After 30 years of owning a home it will be paid it off. That means they can live the rest of their lives RENT FREE. For more on this, watch my video Renting vs. Buying a home. Here’s the Link – https://youtu.be/m9WA1ft3uDc
#3 Buying a home is forced savings – Most Americans are bad at saving money. Owning a home becomes the only form of savings for many. By purchasing a home & paying off the balance of your mortgage each month, you’ll pay down your mortgage & build equity.
#4 Homeownership is enhanced by leverage – Owning a home is a unique investment because it appreciates on the value of the home & not the money you’ve put into it. You build equity each time you make a mortgage payment, but more importantly you’ll be building equity on what you borrow. You can leverage a $15,000 down payment into a $300,000 home. You could realistically earn $12,000 in equity on your $15,000 investment. In just 1 year, you will have almost doubled your money!
Yes, buying a home is a HUGE decision, but it can easily be the best financial decision you ever make.
Before you jump in watch my video, Everything you need to know before you buy a home. Here’s the link –
Once again, homeownership is considered by many to be the safest & best tool for building wealth. As I’ve mentioned in other videos, there are many other advantages to buying a home that aren’t financial. My goal is to not only educate but to inspire people, to build a better life by purchasing a home.
If you don’t already know this, I have dozens of videos covering a many Real Estate related subjects. Here’s a video for those still trying to decide if they want to buy a home –
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