Between an unstable job market and high student debt, it’s no wonder millennials are apprehensive about the prospect of buying a home. On the flip side, there are several benefits to becoming a millennial home owner.
Nonetheless, you should always proceed with caution when considering home ownership. Ask yourself the following questions:
• Can you afford it? Talk to lenders, research the home buying process, and find out if you can afford to move onward.
• Do you plan on sticking around? Consider whether you plan to stay in the same location for a while and whether your lifestyle would complement home ownership.
If you can answer “yes” to these questions, it’s time to consider these five reasons to say “yes” to becoming a first time homeowner:
At the end of the month after making yet another rent payment, you’ll have nothing to show for it. This reason alone is enough to consider building equity through home ownership instead of building your landlord’s equity from renting. Whether looking to buy a car, make improvements around the house, or face emergencies with financial confidence, building equity in your home will make it easier to get loans in the future. You simply won’t get that benefit from renting.
2. Look at the larger picture- resale value.
While caught up in the excitement of looking for a home that suits your needs, it’s easy to forget to think about resale value. However, a modest purchase today may net a surprisingly larger return in the future. Things that affect resale value include:
• Proximity to businesses, restaurants, stores, schools, public transportation, etc.
• Age of the house- homes between 30 to 40 years old tend to hold less sway than homes that are historic or brand new
• Neighborhood crime rates
• Size and layout
• Renovations and upgrades
Click to get pre-approved for a home mortgage!
Uncle Sam wants you to buy a house and has a bucketful of tax breaks to encourage you to do so. Mortgage interest is deductible, home improvement loans are deductible, and property taxes are almost always deductible. The government also offers tax credits to those making efforts towards becoming more energy efficient. Do some research and you’ll find many more tax benefits.
4. Interest rates are lower than ever before (but not for long).
Interest rates are at an all-time low, but they won’t stay that way forever. Financial woes such as not being able to make a down payment may have stopped you in your tracks, but you have options and home ownership may be more realistic than you think. Start talking to lenders and realtors today and find out how to make a move now while the iron’s still hot.
Need help navigating the home buying process? Agent Lady will lead you through the process, and help you find the right house and neighborhood. And remember, friends don’t let friends buy a home without Agent Lady!
About Agent Lady: Cherise Wynne is a leading real estate agent in Philadelphia, helping home buyers and sellers navigate the City of Brotherly Love, with a special focus on first time home buyers. To chat about getting started with your first time home buying experience, click here.
