For many renters, the idea of homeownership feels like an impossible dream. Arizona’s housing prices have increased considerably over the past year and the COVID-19 pandemic has resulted in an increased demand for housing along with a decrease in availability. While this might be intimidating for first-time homebuyers, working with a seasoned realtor and highly knowledgeable mortgage experts, such as the experts from the Potempa Team, can ensure that the investment is worthwhile and the buying process goes smoothly, regardless of market conditions.
While renting has its perks, the benefits of homeownership far outweigh the benefits of renting a home. Below, we talk about some of the top reasons owning a home is better than renting.
1. Home Ownership is a Great Financial Investment
When you own your own home, you’re able to build wealth over time and ultimately, increase your net worth. As you make your mortgage payments and reduce your interest, you begin to build equity in your home and as a result, your net worth increases. Additionally, once your mortgage is paid in full, you can enjoy a substantial reduction in your living expenses.
When it comes to your home’s value, you can expect good things if you invest in real estate now. Realtor.com has forecasted a 7% increase in home values in 2021 and if this pattern continues, new homeowners can continue to see a strong return on their investments.
2. You Can Secure Your Monthly Payments
When you’re renting, your monthly payments are subject to change fairly regularly. A typical lease lasts one year and when it expires, the landlord can choose to increase rent or even sell the property, leaving renters in a bind. Owning your home is different — your monthly or bi-weekly mortgage payments remain relatively steady throughout the duration of your mortgage term. Of course, this is subject to interest rates. However even if you’ve selected a variable rate mortgage, where payments change more frequently, increases and decreases in the amount of your payment are typically minor.
3. You Can Make Your Home Yours
When you rent, even minor changes to the home need to be approved by the landlord. When you own your own home, you can change everything from the wall color to the type of flooring in your home whenever you wish, provided you have the budget for it.
4. You Can Lay Down Roots in a Stable Environment
For many young families, renting can be a burden. Often, it means moving frequently and uprooting children from the homes and neighborhoods they love. Owning a home is a great way to solve this problem while giving children (and adults) the opportunity to make neighborhood friends and create lasting memories in a stable environment.
5. You Can Borrow Against Your Equity If There’s Ever An Emergency
If you ever find yourself facing a financial emergency, you may be able to borrow cash against the equity in your home if you own your own property. Taking out a second mortgage can also help with expenses such as vacations, major purchases and home renovations.
Trust the Experts at OneTrust Home Loans
If you’re ready to explore the idea of homeownership, OneTrust Home Loans Potempa Team is here to help. Get in touch to speak with an experienced mortgage professional.