When it comes to making a smart financial decision, buying a house is often at the top of the list. Despite the current market, experts agree that owning a home is usually more beneficial than renting for many. Peter Mallouk, certified financial planner and president of Creative Planning, explains that buying a home is not necessarily an investment, but rather a long-term commitment. Demand for homes is expected to remain steady in 2021, especially as first-time buyers enter the market.
Before you make the decision to purchase a home, you must consider the costs associated with it. You'll need money for the down payment and closing costs of the mortgage, as well as moving and other expenses. Alternatively, if you invest what you would save by not buying a home in something that is likely to increase in value, such as stocks and bonds, you may end up with more money in the long run. To ensure you make sound decisions and navigate the home buying process successfully, it's best to enlist the help of a good real estate agent.
One of the main advantages of owning a home is that your home equity can increase over time and provide you with a low-cost source of cash when needed. After deciding to buy a home and calculating your down payment, you'll need to figure out how much you'll need to borrow and what type of mortgage you'll want to get. If you're looking for an easier way to buy rental properties, Roofstock is an excellent option. Fixed-rate mortgages are beneficial because your monthly principal and interest payments will remain the same for the life of your loan, regardless of any changes in your home's value.
Ultimately, whether now is a good time to buy a home depends on your financial situation, life goals, and readiness to become a homeowner. It's important to find an attorney who has experience working with buyers in your situation and who will contact you promptly. Many people thought of their homes as investments and ended up with an underwater mortgage due to serial refinancing. In addition to the mortgage, buying a home involves additional one-time payments such as closing costs, legal fees, and other expenses related to the purchase like home inspection.
Real estate investments can be profitable but require significant work and money and involve considerable risk. Buying a house can be an intimidating process; it may be one of the most expensive and emotionally charged purchases of your life. However, if you are financially prepared, it can pay off in the long run.