Here we go, another blog post so why you should buy a house now. There are literally thousands of posts that could give you reasons to buy now or reasons to wait, so why is this one any different? Well, it’s the one that you have stumbled upon and so I have your attention for just a few seconds telling you why now might be a great time, especially if you are a millennial.
We specialize in helping people find and purchase the right home. Sometimes it’s not a good time to buy a house and that goes on a case-by-case basis. I don’t want you to buy a house only to be house poor. I want you to make a wise decision and not have buyers remorse a month or two down the line. This means not making a knee-jerk reaction but it also means pulling the trigger when the time is right.
We are a society that loves lists so why not start with a list of the five good reasons millennial should stop paying rent and buy a house.
#1. You really are paying someone else’s mortgage.
Sometimes this works out for your benefit. Let’s say you plan on moving within the next 6 to 12 months. Buying a house now only to sell it down the line is not economically feasible as you would be losing money having to turn around and sell it again. But, if you plan on staying in a home for 3 to 5 years or more, buying might be an excellent option and you’ll be putting your own money away as equity rather than paying someone else’s mortgage. You don’t want someone else making money off of you, do you?
#2. It’s a great way to express yourself.
Millennials are all about finding new ways to express themselves either in entrepreneurial ways, creativity or in their social life. Buying a house as to that creativity as it is now a place of your own that you can alter, remodel, and deck out however you want.
#3. It may not cost as much is you think it does.
If you are paying anywhere from $1300 to over $2000 a month in rent, you could be putting money away for yourself in a home that you live in. Very few investments let you actually use your investment while you are investing in it. Real estate is one such investment. Not only are you putting money away in equity but your home is gaining value, increasing your net worth. It’s important to run all the numbers ahead of time including any homeowners dues, property tax, insurance and monthly maintenance costs. If you can put that all within what you’re paying now for rent, it makes perfect sense to buy.
#4. You may not need 20% down.
There are so many different programs out there that it’s almost impossible for someone not to buy a house. Now, if your credit score is in the 300s, you have $2.15 in your bank account, any your credit history is far from perfect, it might take you a little bit of time but, those that have a credit score over 600, have a few hundred dollars in the bank or even a few thousand, and have a stable career, have an excellent chance at getting a mortgage, even with a very low rate. Even your student debt is not that big of a deal. Sure, many millennial’s are saddled with a lot of student debt right now, but this is okay debt when it comes to lenders. It’s not the end of the world. It’s those credit cards that add up to high-interest rates that can really kill you.
#5. You can stand out from the crowd or be a part of it.
In the first three months of 2017, there were over 850,000 new homeowner households. This is the first time in a decade the new buyers outpaced new renters. But, that doesn’t mean you have to go with the crowd. You can choose to go with the crowd and join the millions of homeowners out there or be separate and stand out from all your friends that still pay rent. It’s really your choice and you’re only competing with yourself.
Ready to buy? Still not sure? Talk to our financial advisors about the options out there, down payment assistant programs or let us help you run the numbers on how you can be a homeowner in 2017.