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Affordability is at an all-time high right now. Interest rates are low, and loan products from Fannie Mae and Freddie Mac are allowing consumers to buy with only 3% down. Even rates for private mortgage insurance have dropped, making 2015 a fantastic year to invest in a home. It's difficult for me to imagine a better time to purchase, and on top of these incentives, I have five more reasons why owning a home is beneficial to you.
- Homeownership leverages your money: If you purchase a home, it's likely going to appreciate in price, so you own an investment that you should make a profit on. In Colorado, homes have appreciated by an average of 12% per year. Other than regular maintenance, there is not a whole lot you have to do to profit off of an investment like a home.
- You're paying for housing anyway: You have to pay for housing either way, so why help to pay off someone else's mortgage when you rent a home? When you own a home, your monthly payments go towards an investment that you can gain equity in. With rising rent prices in Denver, it just makes a lot of sense to buy a home right now.
- It's a form of forced savings: You're making a monthly payment, a portion of which goes toward your principle balance, and in 15 or 30 years, you will have the savings of your home's value. This is incredibly important if you wish to have financial security in the future.
- Major tax benefits: Property taxes are deductible, and mortgage interest is tax-deductible. There are many tax cuts that you receive when you own a home as opposed to when you pay rent on a property. Also, it's becoming more affordable to pay a monthly mortgage than to pay rent each month, and this is especially true here in Denver.
- A home protects against inflation: When inflation occurs, your home gains value, so your equity increases and your wealth does too. This is huge, and with the amount of appreciation we're seeing, you can gain equity extremely quickly.
If you're renting right now, I suggest you start considering a home purchase. Homes are wonderful investments for the future, and there are actually a lot more benefits to homeownership than I could discuss in the time frame of this video. Please feel free to reach out to me to learn more.
As always, please come to me with any questions or concerns about real estate in Denver!
