Owning a home is perhaps one of the smartest long-term investments towards one’s future an individual can make. Home equity can provide a good amount of security for when someone is older and can even be an emergency source of cash, such as when you apply for a HELOC. No wonder millennials compromised 35% of home buyers in 2015 according to the National Association of Realtors. If you’re a millennial who’s still on the fence about purchasing a home, below are our top reasons why you should go for it now!
Do it for the Tax Breaks
Do you know that the interest you pay on a home you own is tax deductible each year? This means that you’ll get the most tax breaks in the early days of you paying off your home because the majority of those payments are interest. Can we hear a yay for tax breaks when you need it the most?
Invest in a Home to Build Equity Now
The earlier you buy a home, the more equity you build because the sooner you can start paying your home’s principal balance, the faster you’re able to own a fully-paid home.
This is good because you can use your home equity to fund various needs in the future by applying for a home equity loan. The funds from this home loan can be used to fix your credit through debt consolidation, to finance another investment, or to pay for huge expenses such as a dream wedding or college education.
Be sure that you don’t end up using your home equity for frivolous things! Any loan taken against your equity means putting your home on the line.
Interest Rates Are Still Low These Days
Mortgage loans have incredibly low interest rates these days, making it even more attractive to get a mortgage loan to finance a home. Mortgage interest rates are at around 3% or even less. Think of how much you’ll save as compared to when rates climb to as little as 5%. You’ll be saving tens of thousands of dollars!
Think of it as an Investment
The odds that your home’s value will be markedly higher a few years down the road is far greater than the opposite scenario, so it just makes sense to buy now that market conditions are very favourable towards buyers.
A market crash isn’t likely to happen anytime soon so you’ll still end up making bank should you decide to sell before a rumored crash. There’s not that much to lose and a lot to gain especially if you’ll compare owning a home to paying monthly rent that’s just like placing your money into someone else’s pockets.
Ready to seek expert help in buying your first home or perhaps considering getting another one as an investment? We can help! Talk to us today! There are a lot of financing options that we can assist you with to make owning a home closer to your reach.