With mortgage rates at almost historically low levels, buying power for homebuyers is through the roof! The lower the mortgage rate, the more house you can buy. The higher the mortgage rate...well, you get the idea. At present, rising rents and the lack of inventory are nudging new homebuyers towards homeownership.
Here are 8 reasons to make this investment now:
1. A monthly mortgage payment may be cheaper than renting
Why spend a larger and larger portion of your income on housing? The median home price in Henrico County is currently $265,866, this is just above the national median home price. So all in all, we live in a very affordable city!
2. It’s yours
Owning allows you to decorate as you wish, add a room, remodel or paint the walls purple, all without permission from your landlord. As more and more Americans are working remotely, having a place that is truly yours is a great incentive to purchase your own home.
3. Begin to build wealth
Owning a home is a long-term wealth-building activity--so don’t expect to buy a home, sell it the next year and make a fortune. However, if you purchase a home and commit to owning it for a longer period of time, usually at least 5 years, who knows--you may be able to turn a profit if you decide to sell.
4. Save money on energy improvements
You can save money on your monthly utility bills and take advantage of tax benefits by upgrading your appliances, adding insulation or replacing your windows.
5. Focus your spending
Owning a home is a great exercise in budgeting. When you own a home, you’re responsible for any repairs. This will encourage you to become disciplined about putting away money for any unexpected repairs. If you’re purchasing an older home, it may be wise to look into a home warranty that would cover your home against any large repairs.
6. Generate a second income
If the house you purchase has more space than you need, you may be able to generate more income by taking in a renter.
7. If you choose a fixed mortgage, your rate won’t increase
When you live in your own home and have a fixed mortgage rate, you don’t have to worry about your rate increasing. Once it’s paid off, you don’t have to worry about it at all.
8. Take advantage of tax breaks
A tax professional can tell you if you’re eligible to deduct your mortgage interest payments on your taxes.