There seems to be a lot of debate nowadays about home ownership. It used to be the American Dream. Now it seems that the younger generation is content with renting, and that home ownership is out of the question for them.
While there are solid reasons why younger people would choose to rent for the time being, there are enormous benefits to home ownership that are impossible to deny.
Why do people put off buying their first home?
It’s easy to see why people would be skittish about buying a home nowadays. One of the biggest reasons why people are nervous to own real estate is the recent housing bubble (and its subsequent burst).
In addition to that, younger people have many considerations when deciding if home ownership is the right course. These include:
- The rising burden of student loan debt: It’s getting harder and harder to pay off student loans. Those people that would normally consider first time home ownership are strapped for cash because they’re already struggling to pay off their school loans. This may make a down payment and monthly mortgage payments seem out of reach to some.
- The need to be flexible and mobile when switching jobs: The job market has recently been tough, but it’s easier to find a job if you can be flexible about its location. Restricting your job search to only locations within driving distance of a home severely limits opportunities.
- The perks that come with renting: There’s no doubt about it – there’s something to be said for the ease of renting. If something is damaged or broken, it’s typically the landlord’s duty to fix. Sure, renters still need a renter’s insurance policy to cover their belongings, but the actual structure of the home or apartment being rented is the landlord’s responsibility.
What are the benefits of home ownership?
Despite all the reasons listed above, there are some immense benefits to owning a home. Take, for instance, these points:
- A home is an investment for the future: When you rent, the money that you pay out every month is essentially money down the drain. This is not the case with money spent on a mortgage. If you own a home, it typically increases in value, and becomes a financial asset and a long term investment for you and your family.
- Home ownership provides stability: If you rent, your monthly payment is at the mercy of your landlord. Once your lease is up, the rent typically rises. Then you have two choices – pay up, or move. If you own a home with a fixed rate mortgage, however, you will typically have the same payment for up to 30 years.
- Owning a home gives you freedom: When you own a home, it’s your property. You don’t need to ask anyone’s permission to paint a wall, install a light, or make any changes. For avid DIY-ers, this autonomy is priceless.
Why is now the perfect time to buy?
If you’re thinking about looking into buying your first home, now is a great time to get in the game! There are many factors that benefit people looking to buy a home:
- Mortgage rates are near historic lows
- Home prices are lower than they have been in many years
- Both home prices and mortgage rates are likely to rise in the near future
And remember, if you’re buying a home, make sure that you get it the protection that it deserves. Call Vargas and Vargas Insurance Agency today to talk to a home insurance expert. You can reach us at 877-550-0025.
Photo credit: Images_of_Money / Foter.com / CC BY
