Unless you are living rent free, you are paying a mortgage, either your landlord’s or your own. Purchasing a home for yourself creates a path for you to build wealth and save money that you may have not yet considered by allowing you to use your repeated monthly housing costs to grow your own wealth portfolio.
Every month that you pay your mortgage, you are paying off a portion of the debt that you borrowed to purchase that home. You begin to own a little bit more after every payment on the principal portion of your loan in the form of home equity. As your home value increases you also gain home equity. In other words, you continue to owe less by paying yourself (your own mortgage), and the plan is, over time, home values grow = Equity.
Let’s not forget the possible tax benefits of owning a home and the possibility to write-off a portion of your mortgage interest paid against your income. ***(Please ask your Certified Public Accountant. I am not a Tax Advisor or Lawyer).
Every quarter, Pulsenomics surveys a nationwide panel of over 100 economists, real estate experts, and investment and market strategists and asks them to project how residential home prices will appreciate over the next five years for their Home Price Expectation Survey (HPES).
The latest data from their Q4 2018 Survey revealed that home prices are expected to round out the year 5.8% higher than they were in January. For the next 5 years home values will appreciate by an average of nearly 3% a year.
For example, let’s assume a young couple purchases and closes on a $250,000 home in January. Simply through their home appreciating in value, those homeowners can build their home equity by nearly $40,000 over the next five years.”~from Keeping Current Matters
If your 2019 New Year’s Resolutions List includes entering the housing market, meet with a reputable local real estate professional who can help you understand where prices and trends are headed in your areas of interest. Be sure to hire a professional to represent you and guide you through the tedious home buying and selling experience.
Maybe, this year you can even purchase an investment rental property. You provide a roof for your tenants, in turn, they supplement your mortgage payment as you continue to build more equity.
Happy 2019 New Year! …and hopefully, Happy New Home, too!