Homeownership Is an Investment in Your Future
Many people are thinking about buying a home, but with everything affecting the economy, some are wondering if it's a good idea to buy now or if it's better to wait. According to Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA),
“The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”
If you find yourself in this situation, remember that it is critical to consider not only what is happening now, but also what benefits you may gain in the long run.
There is a lot of information available about how homeownership contributes to the growth of a homeowner's net worth over time. Even today, many people consider things like 401(k)s before considering homeownership as a wealth-building tool. It's especially important to understand how homeownership can help you invest in your future if you're a young prospective homebuyer. According to a Bloomberg article:
“Millennials have higher average 401(k) balances than Generation X did when they were the same age, but they’re not any better off financially. . . . A lot of that has to do with being less likely to own a home.”
Take a look at the data to get a better idea of how much owning a home can improve your life over time. The same Bloomberg article highlights the wealth disparity between renters and homeowners aged 65 and up. Even when incomes are comparable, the difference is significant.
So, if you want to build wealth to help you succeed later in life, it may be time to prioritize homeownership. That's because whether you rent or buy a house, you'll have a monthly housing expense regardless. The question is whether you will invest in yourself and your future, or whether you will assist someone else (your landlord) in increasing their wealth.
Contact a real estate advisor to discuss your options before postponing your homeownership plans. You'll have expert advice on how to make the best decision right now and the best investment in your future this way.
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