Many people think about buying a home but are too worried that it would be a financial gamble. And most of them haven't even considered the risk of not buying a home. Long-term home ownership can be the most reliable way to achieve financial security for most of the working class; even if you buy in today's real estate market. Long-term homeownership will give you access to the capital you will need to help support yourself in your later years.
Here are four reasons why you shouldn't wait to buy a home:
1. Interest rates could go up. Interest rates are currently 5.12% for a 30-year fixed rate conventional loan. This is very low compared to recent years.
2. Renting can deprive you of big tax breaks. Long-term home ownership is one of the last remaining tax shelters. There are big tax breaks for homeowners but not for renters.
3. Your future is going to be expensive. Over the years, financial experts have suggested that retiring will cost you at least 70% of your pre-retirement income. This alone is a great reason to buy a home now and start building your equity.
4. Start small and trade up. If you can't afford the home that will financially secure your future, start small and upgrade later. Buy an affordable starter home; then sell when the market is back to a seller's market. By then, you will have accumulated enough equity to put you in more valuable home. Just keep long-term in mind. The longer you own a home without touching the equity in it, the more money you will have to retire on if you take the equity out or sell it later.
Don't let today's real estate market scare you away from homeownership. It's actually the best time to buy. You will find homes for sale below market value, making your investment even better.
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