Thinking about taking that leap of faith into homeownership, or are you planning on taking the steps into owning your first home? Curious about what drives others to suddenly dive into this big decision regardless of what you hear from the media that the housing market might be crashing down soon? We recently stumbled upon a survey by PulteGroup that sheds some light on first-time homebuyers’ motivations.
“When asked why they purchased their first home recently, the answer was simple: because they wanted to. Either the desire to stop renting or recognition that homeownership is a smart financial investment was the main motivator for 72% of respondents.”
While the research mainly focused on those purchasing brand-new homes as their first property, similar feelings resonate with almost everyone stepping into their first hew home journey. Let’s dive deeper waters into those homeownership perks and see if they really resonate with you. Shall we?
Owning a home offers a sense of steadiness that renting just doesn’t match
Ever felt the pinch when you’re usual rent dues take an upward leap? As a tenant, there’s always that niggling worry at times that the next lease renewal could come with a heftier price tag than you can actually afford. But here’s a refreshing thought that you might want to try and consider: diving into homeownership with a fixed-rate mortgage offers you a steady monthly payment plan for the entire loan term. That’s the kind of predictability that just feels… cozy and safe. Aside from that, just think of the endless possibilities you can do with your own home rather than renting.
Real estate expert Jeff Ostrowski has the lowdown on this:
“With a fixed-rate mortgage, your monthly principal and interest payment is set for as long as you keep the loan. Sign a rental lease, however, and you could see your rent rise the following year, the year after that and so on.”
Every time you snag a house, you’re actually tucking away a little treasure. As the neighborhood thrives, so does your piggy bank
You know what, there’s more to owning a home than meets the eye. It’s not just about having a place to call your own. Consider it like this: renting might be easier on the pocket today compared to paying your mortgage, but it doesn’t let your money grow in the long run. I once heard Mark Fleming, the main financial guru over at First American, talk about how crucial this difference is. It’s something to chew on
“Given current dynamics, more young households may choose to rent in the near term as the cost to own, excluding house price appreciation, has unequivocally increased. Yet, accounting for house price appreciation in that cost of homeownership, whether to rent or buy will depend on where, and if, a home is likely to cost more or less in the near future.”
Here’s the deal: when you’re renting, you’re not really putting your money into something that grows over time. But when you own a home, you’re essentially planting a financial seed that has the potential to grow as your home’s value increases. It’s like having a little savings pot that gets bigger without you even noticing! When you think about it that way, buying a home isn’t just about having a cozy place to call your own anymore, but it’s also a smart move for your wallet in the long run. Great news, as well as industry folks and experts have a hunch already that home values will keep rising steadily in the coming years, so it’s like investing in your own financial growth journey regardless of what the media has to say about the real estate market or whatnot.
In a Nutshell
Are you thinking of making the jump or that leap of faith from renting to owning a home in the San Diego area? It might just be a brilliant idea for your future.
Give the McT Real Estate Group a call, and let’s chat about setting up a stable home payment and paving your path to building some serious wealth,