3 Ways You’ll Win When You Buy a Home This Year

There are so many great reasons to purchase a home, and over the past year, we’ve realized more of them than we ever thought possible. If you’re a first-time homebuyer, having a home of your own can give you a greater sense of security and accomplishment in a time that’s largely uncertain. If you’re a repeat buyer looking for your dream home, making a move might give you the space or features you need to find greater success and happiness in a new normal way of life. Whatever your motivations are, here are three reasons why becoming a homeowner now may help you win big in the long run. #### **1\. Buying a Home Is a Great Investment** Several recent reports indicate that real estate is still a [good investment](https://www.simplifyingthemarket.com/2020/07/10/americans-rank-real-estate-best-investment-for-7-years-running-infographic/?a=550432-7d0dd2250a392515b4ab3273bfa644ce), topping other options such as gold, stocks, bonds, and savings. Why? Real estate helps you build [equity](https://www.simplifyingthemarket.com/2021/01/06/the-importance-of-home-equity-in-building-wealth/?a=550432-7d0dd2250a392515b4ab3273bfa644ce), a type of forced savings that grows your net worth. According to the latest [Equity Report](https://www.attomdata.com/news/market-trends/home-sales-prices/attom-data-solutions-q4-2020-u-s-home-equity-underwater-report/) from _ATTOM Data Solutions_: > _“The count of **equity-rich properties in the fourth quarter of 2020** represented 30.2 percent, or about **one in three, of the 59 million mortgaged homes in the United States.** That was up from 28.3 percent in the third quarter of 2020, 27.5 percent in the second quarter and 26.7 percent in the fourth quarter of 2019, despite the ongoing economic damage caused by the worldwide Coronavirus pandemic.”_ #### **2\. Mortgage Interest Rates Are Low** The [_Primary Mortgage Market Survey_](http://www.freddiemac.com/pmms/pmms_archives.html) from _Freddie Mac_ indicates interest rates for a 30-year mortgage have fallen since November 2018 when they hit 4.94%. In their latest [forecast](http://www.freddiemac.com/fmac-resources/research/pdf/202101-Forecast-02.pdf), _Freddie Mac_ expects rates to remain low, leveling out to **an average of 2.9% in 2021**. When you purchase a home at a low mortgage rate, it will impact your monthly mortgage payment, giving you the opportunity to likely get more house for your money. #### **3\. Investing in Your Future Pays Off** There are some renters who haven’t purchased a home yet because they’re uncomfortable taking on the obligation of a mortgage. What many renters don’t realize, though, is the financial power of equity. As a homeowner, your monthly mortgage payment becomes a form of _‘forced savings’_ you can reinvest later in life as you see fit. You can use it in a variety of ways, like to fund a loved one’s education, move up to a bigger home, or start your own business. As a renter, you’re actually growing your landlord’s equity instead of your own. If you’re ready to put your monthly payments to work for you and take steps toward those dreams and goals, purchasing a home may be the way to go, especially as rental prices continue to [rise](https://www.simplifyingthemarket.com/2021/02/11/47-of-new-buyers-surprised-by-how-affordable-homes-are-today/?a=550432-7d0dd2250a392515b4ab3273bfa644ce). ### **Bottom Line** Buying a home sooner rather than later could lead to substantial savings and long-term financial growth. Let’s connect to determine if homeownership is the right choice for you this year. Posted in [First Time Home Buyers](https://cherylbowerrealestate.com/category/first-time-home-buyers/), [For Buyers](https://cherylbowerrealestate.com/category/for-buyers/), [Interest Rates](https://cherylbowerrealestate.com/category/interest-rates/)