What Waiting a Year Means to your Home Purchase
Buying a home is the largest investment most people will ever make. It is an investment in their future, in a space to call their own for their family, or a place to grow their family. The American Dream of owning a home has long been romanticized in movies, commercials and stories, but it can be a daunting undertaking for the first time home buyer. This group is normally not as financially stable as their home-owning peers, and the longevity and overall cost of the investment can often cause them to “pause” in their decision making to move forward in purchasing a house.
All that said, these same people are often renting space, for cost and short-term investment purposes, putting money into a roof over their heads that nets out to zero when they leave. It’s not a long-term solution in any case, but today, with a stable housing market and rent increasing yearly, they are truly doing themselves a disservice by waiting to enter the home buying market.
Because not only is their rent going to increase yearly, home costs will as well.
According to the Home Prices Index Report from CoreLogic, home prices are estimated to appreciate by 4.8% over the next 12 months. That means a higher mortgage and relatively, more interest owed over the life of the loan.
Bottom line? Waiting to buy a home now means you will owe more later. It’s really as simple as that.
What other argument do you need to at least research buying your first home now? Meet with a local mortgage and real estate professional this month and see what the real state landscape look lie for you. Take the time now to save money for your future.