As we slowly return to normal life many of us can re-visit our neglected goals. If your goal was to buy a home this year, but it got put on the back burner you are not alone. After going through quarantine, wouldn't you be much happier in your own home? This is just one of the many reasons you may be ready to break the rent cycle. I'd like to dissect why buying may be right for you; from saving money (yes, buying can save you money) to having a place to call your own, lets look into it!
Rent is more than buying!
With the average rent in Grand Rapids being around $900/month for an apartment this begs the question of how much it would be to buy? With interest rates floating just above 3%, you as a buyer have tons of purchasing power. Referring to the chart below a $265,000 house would only cost you about $1,117 a month in principal and interest! And let me tell you, that is a whole lot more space than a 600 sq. ft. 1 bedroom apartment for $900. Also, not to mention this is money you are basically throwing into a forced savings account rather than your landlords pocket. Save it up in equity and it use it when you go to purchase your next/forever home.
Grow your Self Worth
Being a home owner sets you apart from renters in both personal aspects and financially. Owning your own home sets the stage for how you perceive yourself, and this in many cases can do wonders for you mental health. However, the financial security that comes along with it will not be insignificant. The average homeowner has a net worth that is about 41 times greater than that of a renter, according to a report from the National Association of Realtors. Homeowners’ net worth averaged between $150,000 and $200,000 a year, according to NAR. Also according to NAR the average net worth of a renter is less than $10,000. Check out an entire article here
Find a place to call your own
Quarantine may have made you realize your home is too small. Wouldn't it have been nice to feel like you could relax? Instead you were piled up with your roommates, or worse.. your kids? Use this as your chance to buy your dream home. No more worrying about putting nails in your wall, bothering the neighbors with loud music, or having a place for a bonfire. Think about all the house projects you could do in your downtime to make your home, yours.
The average first time home buyer spends less than 5 years in their first home. Don't get me wrong a home is a huge commitment, but don't think you'll be stuck there. Life changes, but keep an eye on the market and a good realtor in your pocket to help you with your next move. Think if it's time to start building yourself up in the world, and you'll be amazed at what homeownership can do for you.
Feel free to reach out to me anytime, or attend one of my First Time Homebuyer Seminars for a low pressure educational experience!
Stephanie Wood, a preferred lender of mine with Inlanta Mortgage, will be accompanying us to give you an entire experience in financing. She will break down how you too can own a home! We can't wait to see you!
Thanks for reading!
Stay safe out there,
Justin