Are you thinking about buying your first house? It can be useful to know why other people made that decision. PulteGroup conducted a survey of first-time buyers. The results were as follows: “When asked why they bought their first home, the answer was simply: because they wanted to. 72% of respondents were motivated by either the desire to stop rent or the recognition that homeownership was a smart investment. If you’re considering homeownership, here’s some more information that will help you decide if these two benefits are important to you. When you buy a home, you have more stability than when you rent You may want to stop renting due to the constant increase in rent. Renters can expect their monthly payment to increase every time they sign a new lease or renew an existing one. Renting can be stressful, but this stability can provide you with a sense of security that renting cannot. Jeff Ostrowski, a real estate journalist, explains: “With a fixed rate mortgage, your monthly principal payment and interest is set for the duration of the loan. If you sign a lease, your rent could rise the next year, the one after that, and so on. Renting may be more affordable right now, but it does not allow you to build wealth over time. Mark Fleming explains this is an important distinction: “Given the current dynamics, young households may choose rent in the near-term as the cost to buy, excluding house prices appreciation, has unambiguously increased. Renting or buying a home will depend on whether or not a house is likely to be more expensive or less expensive in the near future. Ownership, on the other hand, can help you increase your net worth by allowing your home to appreciate in value. Renting does not give you this benefit. Experts predict that home prices will continue to rise in the next few decades at a rate more typical for the market. When you buy a house, you are not only investing in a place for yourself to live in, but also in your financial future. Bottom LineIf renting is not for you, buying your first home can be a smart decision. Connect with an agent to stabilize your housing payments and build wealth for the future.
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