The Importance of Buying a Home

Home ownership: millennials aren’t thinking about it, and it’s causing stress for millions of middle aged adults around the United States. You might ask yourself one day “when is the right time to buy a home?”, but who’s to say that you have to purchase one in your lifetime? You’re free to rent your whole life, so why would you ever want to buy a home if there’s a chance of it stressing you out long-term?

Nowadays, people are purchasing homes not based on age, but rather the good timing of the housing market. Between 2008 and 2013 the housing market was in a major downward spiral, scaring off potential buyers, but in 2016 we’ve recovered from the recession and the housing market is on the rise. Although many people around the country have great credit and substantial savings, it may not necessarily mean they want to purchase a home.

Loan providers like Western Federal Credit Union, Nusenda Credit Union and PNC Bank have seen the number of home loans, and home equity loans approved go down due to a number of reasons including the assumption that it’s cheaper to rent than buy, but that’s far from the truth.

With more people growing accustomed to renting over the past decade, prices have continued to rise. In places like San Francisco and Denver, rent has escalated by over 11 percent according to CNN Money. The housing crash that happened years back has scared many would-be home buyers into renting, and according to CNN Money, “there just aren't enough ‘For Rent’ signs to keep up with the demand.” Therefore, in order to keep up with the demand, rent will continue to rise.

Even mentioning “buying a home” outloud can be scary for some, but the fact is the cost of rent is rising, and a 30-year fixed-rate for a home loan is sitting at four percent which isn’t bad at all. According to realator.com you can earn major tax breaks as well, with tax laws continuing to favor homeowners. The article states that, “Unless your home loan is more than $1 million, you can deduct all monthly interest you are paying on that loan.”

Regardless of how old you are reading this, it might be time to start thinking about purchasing a home while the numbers are still in your favor. Fifteen years from now it might not look as appealing to take out a home loan so take advantage of the numbers being in your favor while you can!