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If you have been thinking about making the transition from renter to homeowner, now is the perfect time to act. Interest rates are low, but they could be rising soon. If you act now, you can enjoy the following first-time homeowner benefits sooner than you think:
1. Building Wealth for the Future
When you pay your rent for a year, you end up with nothing more than a dozen rent receipts. When you pay your mortgage for a year, you are 12 months closer to owning your home, free and clear.
Making the transition from long-term renter to first-time homeowner allows you to start building wealth for the future, something that will become more important with each passing year. No one can guarantee that the home you buy today will be worth more tomorrow, but the chance to build long-term equity is one of the biggest perks of homeownership.
2. Stability for Your Family
Renting is fine, but owning your own home provides an additional level of security for your family. For example, when you're shopping for your first home there's a chance to check out the local schools to see where your children will be going and what they can expect. Owning your own home also means having a backyard, where the kids can play on their own swing set. Childhood memories like this are priceless, all courtesy of your first home.
3. Protection from Rising Rents
If you buy your first home with a fixed-rate mortgage, you always know how much you will pay. The same is not true for renters, especially in hot markets and neighborhoods undergoing gentrification. Many renters, blindsided when their previously affordable apartments skyrocket in price, have limited options when rent spikes take place. Becoming a first-time homeowner can protect you from price spikes and make your financial life more predictable.
Making a move from renter to first-time homeowner can be scary, but it comes with a host of potential benefits. From a lower tax bill to greater peace of mind to financial stability, there are plenty of reasons to kiss renting goodbye and start shopping for your first home.