We recently asked a homebuyer to share her story with us. Lots of homebuyers go into the process for unique reasons, but we felt her's really reflected why you should consider buying a home today. Here is her story:
It was only recently that I finally decided to invest in my own house. Ever since the housing market plummeted years ago, I’ve been wary about taking any sort of financial risk. However, earlier this year I decided that if there was ever a time to buy, it was now. The housing market has been improving steadily over the last few years and is actually quite favorable to homebuyers. Additionally, I realized that I wasn’t doing myself any favors by continuing to rent. After speaking with the real estate experts at Carrington Real Estate, I realized that I would save money over the long run if I stopped renting and took advantage of the favorable housing market by investing in a home right now.
A Favorable Market
In helping to make my decision to buy a home, my real estate agent gave me a good idea of what the real estate market looked like, both on local and national levels. He discussed with me the fact that home prices have been growing steadily due to the recovery of the economy, and therefore the housing market. He let me know that home prices were still affordable, but that they would only continue to increase over the upcoming year.
If that wasn’t enough to get me to seriously consider making the jump from renting to owning, my agent informed me that mortgage rates were at an all-time low only a few years ago and that they have only recently begun to climb back to normal rates. The fact that home prices and mortgage rates are only going to go up in the near future had a big impact on my decision to become a homeowner.
Buying Instead of Renting
Before deciding to buy a home, I had been renting for almost seven years. There were a number of reasons for this – the main one being that I wasn’t sure where I was going to be at any given time. I didn’t want to commit to buying a house if I ended up having to move to another city due to a change in employment. Now that I’ve settled into my career and have an eye towards starting a family, homeownership just makes more sense. As I began looking over my finances, I realized that buying a home is actually the more affordable option over the long term.
With the help of my agent, I sat down and compared my rent with the current mortgage rates. It turns out that I could be paying less on a mortgage than on rent. Part of this is due to the lower mortgage rates of the last few years, and part of this is due to the increasing rent rates. This isn’t even taking into account the fact that rent increases every year, whereas some mortgage options, such as a fixed-rate mortgage, only require a set amount every month that never changes. Then there’s the fact that by taking out a mortgage for a home, I’ll actually become the owner after I pay it off. Renting doesn’t lead to any kind of ownership. I realized at that point that I could have been paying off a mortgage over the last seven years instead of paying for rent, and I would have been almost halfway there towards paying off my own home!
Don’t make the mistake of continuing to rent instead of buying. The housing market is still favorable to us home buyers and you’re only losing money by renting. Be sure to contact Carrington Real Estate for additional information about buying a new home.