Forced Savings with your Arizona Home - Benefits of Owning a Home
Do you want to own your own home or condo? If the answer is yes, then it's obviously important to determine if buying is a good financial move. This article will outline the benefits of owning a home, including how the forced savings created by a mortgage helps an Arizona homeowner invest.
People often ask agents which type of real estate do they recommend, investing in real estate or buying a home to live in. Well the answer will probably always be yes, Experts say you should invest in real estate and have a home. I tell people to buy a home because one, it gives you the foundation of an investment and two, it's more than likely going to help you create forced savings each month. Financial Benefits Owning Arizona Homes.
There are many financial benefits to owning a home, but one reason I love it so much is I created forced savings. Even though the monthly payments might be a bit higher when you first move in. Paying down that mortgage and seeing the equity build is a great feeling you don't get with renting. With renting in most cases your building your landlords net worth.
Home Appreciation in Arizona -Financial Benefits Owning Arizona Homes
Home appreciation in Arizona is a hot topic these days as more and more people are beginning to appreciate the value of their home ownership with thousands of dollars in equity built. With a combination of years of paying down a mortgage, price appreciation, and a sellers market driven by low mortgage rates, this puts the seller in the drivers seat for 2021.
Getting a home is a significant investment. It’s an investment in your future, and it represents a risk. You should be aware of what the potential consequences are before making this decision. There are financial benefits to Arizona home ownership, but you should consider doing everything you can to secure those benefits without putting increased stress on your family or your home.
Talk to your CPA, financial advisor, and create a realistic budget, make sure the home is affordable. Make sure you can weather a buyers market, where prices go down. Can you afford the payment for 5 years? People that weathered the 2006 downturn, now in 2021 are reaping the benefits of price appreciation on top of paying down a mortgage for 15+ years.
Consistent Payments Vs Rent Going Up.
When the landlord decides to ask you to leave, or increases the rent?
A recent study reported by WalletHub found that homeowners who make their first few payments on time earn an average of $44,000 more over the course of 30 years than those who make their payments late.
There are lots of reasons to purchase or rent a home. On the surface it might seem like buying a home is simply a financial decision whereas renting is a lifestyle choice. In reality you could say both are correct.
Financial experts believe owning a house is not a one time investment, it is an investment in the future that will continue to pay off for years. Homeownership gives you the opportunity to earn equity as time goes on with real estate appreciation. This means hopefully that in the future you can sell your house for more than it was worth when you first bought it.
This option isn’t available when you rent, because rent rarely increases net worth much at all. Even though annual ownership costs were similar to renting, these costs tended not to be static with ownership, but instead increase as the home aged. That means you need extra cash on hand to handle as those increase. But rent does go up depending on the market.
Bottom line
Owning a home comes down to a personal preference. Location, city amenities, crime rates, and weather will all be huge factor in your investment. Cheaper is not always better, be careful with the neighborhood you choose. In Arizona we have a buyers advisory. Ask us a copy of the Arizona buyers advisory it has many great links and helpful information about what to look for when buying an Arizona home.
Face it, rent is expensive and if you live in an apartment, your landlord has all the power. When you own a home YOU control your destiny and reap the potential financial rewards
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