Considering your first home purchase? Understanding what drives others to make this decision can be valuable.
According to a recent survey conducted by PulteGroup among first-time homebuyers:
“When asked about their first-time home purchase, the response was straightforward: they did it because they wanted to. For 72% of respondents, either the desire to escape renting or the realization that homeownership is a wise financial move served as the primary motivator.”
Although this survey specifically focused on first-time homebuyers of newly constructed homes, the same sentiment holds true for anyone making their first home purchase. Here’s additional information to help you contemplate these two advantages of homeownership, determining whether they resonate with your decision-making process as well.
When You Buy a Home, You Have More Stability than When You Rent
Considering the escalating rental costs, you may be inclined to transition away from renting. As a renter, there’s the constant possibility of your payments rising each time you renew your rental agreement or sign a new one. In contrast, when you choose homeownership through a fixed-rate mortgage, your monthly housing expenses remain consistent. This stability can offer you a sense of security that renting simply cannot offer.
When You Buy a Home, You Grow Your Wealth as Home Values Climb
Furthermore, owning a home can serve as a valuable long-term investment. While renting may appear to be the more budget-friendly choice in the short term, it lacks the potential for wealth accumulation over time. Essentially, renting doesn’t offer the opportunity to build equity.
In contrast, homeownership can enable you to increase your net worth as your property’s value appreciates. This presents an advantage that remains out of reach if you continue renting. When you take this into consideration, it may make more financial sense to make a home purchase. Most experts anticipate ongoing appreciation in home prices over the next few years, following a more typical market pace. This means that when you invest in a home, you’re not just securing a place to live; you’re also making an investment in your financial future.
Bottom Line
Making the decision to purchase your first home rather than continuing to rent could be a wise choice. Reach out to us right now, we can assist you in establishing a consistent housing payment while also starting the process of accumulating wealth for your future.
