I saw an article in Forbes recently discussing the “cooling” real estate market. That adjective to describe the housing market probably gives potential sellers the chills, while exciting many potential home-buyers. But, many home buyers are actually wondering if buying a home now, with rates at 7%, is a smart move.
The answer to that? Owning a home is always a smart investment. If you plan to own the property for at least five years, you can bet on it paying for itself in the end. If you want to read more good reasons for prioritizing a home for purchase, I highly recommend clicking on the Forbes link up above. It’s worth checking out!
The news always sensationalizes issues as a whole, it is all doom and gloom. However, most people buy or sell homes due to life events such as marriage, job in another city, another baby, a divorce or a death. Rates rarely are thought of when life happens. I bought my house in 1999 at 8.5% not knowing any difference or thoughts about the rate. It was an interest only purchase, however the next 13 years it was refinanced over 7 times. I ultimately ended up with 2.75% 30 year fixed. In that time, the value of my home has increased 4 times the initial price. I now have a ton of equity in my home, which I would not have it I didn’t purchase a home. Buying our home used all our savings and it was tight for the first couple of years. Best investment I ever made.
Other reasons to buy a property some of which are highlighted in the Forbes article as there are many: (1) avoid rising rents with a fixed housing payment; (2) tax advantages; (3) ability to do what you want with the home; (4) forced savings/retirement nest egg; (5) pride of ownership; and (6) inflation hedge.
Finally, this transitioning market makes it easier for buyers to get a home, prices have come down, there are not as many offers, you are not competing against 20 offers and having to remove all your contingencies. You can actually ask for a credit or repairs and get it. Some are predicting rates will go down sometime next year, if that happens, prices and competing will go up and you can just smile while sitting in your new home and start the refi process for a lower payment.