The 2018 national housing forecast by realtor.com predicts a 7% increase in new home sales. They suggest an easing of the shortage of property will fuel a modest rise in home sales. Despite fluctuations in the market, people are still eager to buy property.
Why is that? Should you be considering buying property? Read on to learn the top reasons people are still eager to buy property.
Freedom to Do What You Want
If you are renting property or living with family, you know how restricting that can be. If you want to remodel the kitchen or paint the kids’ room, you probably have to ask permission. Not every landlord will approve of your ideas, limiting your ability to make the space unique to you and your style.
Any improvements you make may increase the value of the property, which is great for the landlord. You have to leave those improvements behind when you go together with the money you invested.
If you own your home, making changes is up to you. You can stamp your style on the place. Any improvements you make that increase the value of the property will benefit you.
Enjoy Your Investment
People often buy real estate as an investment. Of course, investments can go up and down. The real estate crash of 2007 showed that investors should be cautious about assuming gains.
Investments only show a return when the asset is sold. Successful property investors have an exit plan. They consider when they expect to sell it and what growth in value they expect to achieve.
If you are thinking about the property as an investment, then consider when and how you expect to get a return on the investment. Have an exit strategy.
If you are buying a home to live in, then you have an asset that you could sell in the future. You still need somewhere to live, but you could buy a smaller or less expensive home to release a profit.
Most importantly, an investment in your home is one you can enjoy by living in it. That’s not something you can do with many other kinds of investment.
Mortgage vs. Rent
If you get a fixed rate mortgage when you buy property, the payment does not change over time. Rents, on the other hand, can change unless you live in a rent-controlled building. This stability brings great benefits.
Stability can allow you to budget, and if your income increases over time, you benefit from more disposable income. You could use your increased income to finance other investments, move to a bigger home, or simply improve your lifestyle.
Once you have paid off the mortgage, then the property is yours. You do not have ongoing rent to pay. Owning your home can provide a useful decrease in living costs later in life.
If you find it difficult to maintain a habit of saving, then perhaps a mortgage payment is one way of getting the habit. Paying the mortgage loan down every month is a regular investment in your property. This payment is an easier form of discipline than finding cash to save, as well as paying rent.
If you have made a wise property choice and the asset grows, then your net worth has increased. If you continue paying rent, after the same period, you have helped your landlord’s net worth increase instead.
Making decisions about investments, mortgages, and buying real estate should not be done lightly. Having useful sources of information and professional advice is important. Before you buy property, get professional advice.
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We at 7th Level Mortgage are an experienced team of mortgage professionals based out of New Jersey and serving the east coast from Pennsylvania to Florida including Delaware and Maryland. We have won numerous awards for our excellent professional work and reputation with clients for being extremely diligent, accessible and hands-on throughout the entire mortgage process.