Real estate is quickly becoming one of the best forms of investment, with almost guaranteed returns on investment. If recent trends are anything to go by, property values are only set to increase from here onward. One New Year resolution that has definitely crossed the minds of most people lately is to buy a home. The question, however, is whether this is the best time to buy? With all the movement in the housing market and the homebuying process, it can be hard to figure out whether now is the right time to buy or if it would be better to wait. That answer will depend on your individual circumstances, as well as your financial situation. (make sure you check out your debt to income ratio ) If you're like most first time buyers, you've likely had every Tom, Dick, and Harry tell you that you should buy a home. Having reservations is a normal part of owning a home. Perhaps you have been sitting on the sidelines, waiting, biding your time for the “best time” to own a home - we're here to tell you that the time is NOW! Rather than waiting to see how things "shake out" later in 2023, here are a few good reasons why you should buy a home in 2023.
Home values have historically risen over time. Today's prices are multiple times higher than they were in the 40s and 50s. Home prices have increased in each decade since then, and this trend is likely to continue. This increase in equity can benefit you when you refinance or sell. You can think of the money you spend on a down payment as an investment, just as you would a savings account. While it's harder to access, the money is still yours as equity in your home. And that down payment will likely appreciate in value much faster than money in a savings account. Home values are appreciating significantly faster, meaning you'll earn more money by investing it in a home. If you buy a home now, you have put your money in a safe, long-term investment that is likely to continue growing, making real estate an excellent investment.
The feeling of owning one's own home is unparalleled. The most significant benefit of owning your home is the security it provides. You'll never have to worry about an eviction notice or monthly rent payment and you will have the peace of mind that you can make the house a home. Want to knock down a wall to create a more open concept kitchen? Paint it, get a dog or three, plant a tree, or take one down if you want—the choice is yours. Doesn't that sound exciting? Don't worry about rent increases or your landlord selling and needing you to find a new place. With a home, you can live there for as long as you want while having fixed payments each month during the duration of your mortgage term! No more unexpected surprises!
Whether you buy a house or live in a rental, you'll have a housing payment. (Rent payments, mortgage loans, homeowner's insurance, loan payments etc) You might as well use those payments to build your own wealth, not someone else's like a landlord. Renting has often been compared to paying 100% interest; however, owning a home and a mortgage is in place, a portion of your payment goes toward the principal balance on your loan, building your equity and acting as a savings account - the difference between what you owe on your mortgage and what your home is worth. You can access this wealth when you sell your home or, while you remain in it, through home equity loans or a cash-out refinance.
2023 presents a unique opportunity for home ownership, with historically low mortgage rates, low inventory and high demand, making it a great time to buy a home. Whether you're looking to buy your first home or upgrade to a larger one, now may be the ideal time to take advantage of what the market has to offer. Mortgage rates are currently at an all-time low, allowing buyers to lock in a great rate for the long term and get more house for their money. Talk to a real estate agent to get a better understanding of the home buying process, purchase price, down payment, mortgage companies, home ownership requirements, monthly mortgage payment, homeowners insurance, mortgage insurance, asking price, home value, borrowing money, final walk through, appraisal fees, property taxes, closing costs, home inspection, other costs, and so much more. A real estate agent will walk you through your home ownership journey. Whether you're a first-time homebuyer or exploring trading up, now may be your best chance to buy a home that fits your needs and budget.
Unlike rent, your fixed-rate mortgage payments don't rise over the years, so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will likely increase. Remaining in one neighbourhood for several years allows you and your family time to build long-lasting relationships within the community. It also offers children the benefit of educational and social continuity. Owning your own home gives you the stability many renters lack.
Buying a home in 2023 means you will be buying in the known-you know what the market is like, what interest rates are, your financial situation, and the state of the economy. Waiting until next year may only bring uncertainty, leading to one of the significant reasons to buy a house in 2023. Owning your dream home now and purchasing in your desired area will set you up for security and peace of mind. Plus, you will be investing in an appreciating asset, build equity and wealth over time, increasing stability in your life, and possibly even save money. All of these factors make owning a home a sound investment for anyone looking to buy in the near future. Although there are no guarantees in life or real estate, the potential benefits of buying a house in 2023 far outweigh the risks. You must consider your personal needs, financial situation, and long-term goals before taking the plunge into homeownership. With a little research, planning and working with a real estate agent, you can make an informed decision that will serve you well for years to come. Good luck!
