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Homeownership Is an Investment in Your Future

Friday, December 9, 2022   /   by Laura Larson

Homeownership Is an Investment in Your Future

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Many individuals are considering buying a home, but some are still unsure whether it would be wiser to wait it out rather than buy now given how the economy is currently faring. The Mortgage Bankers Association's (MBA) President and CEO, Bob Broeksmit, explains: “The desire for homeownership is strong. Many prospective buyers are waiting for the volatility in mortgage rates to subside, as well as for a clearer picture of the economic outlook.”
 
If you find yourself in that situation, keep in mind that it's crucial to take into account both the present situation and potential future advantages. There is a ton of information available about how becoming a homeowner can gradually increase a homeowner's net worth. However, many people still prioritize financial instruments like 401(k)s before considering property ownership as a way to increase their wealth. It's crucial to comprehend how homeownership is another significant strategy to invest in your future if you're a young prospective home buyer. According to a Bloomberg article, “Millennials have higher average 401(k) balances than Generation X did when they were the same age, but they’re not any better off financially... A lot of that has to do with being less likely to own a home.”
 
The disparity in income between renters and homeowners 65 years of age and older is illustrated in the same Bloomberg story. Even when salaries are comparable, the disparity is significant. So it might be time to emphasize homeownership if you want to build a portfolio of assets that will secure your success in the future. Because whether you choose to buy a home or rent one, you will still have a monthly housing bill. The decision is yours: will you make an investment in your present and future, or will you assist your landlord in amassing more wealth?
 
Bottom Line
Reach out to Laura Larson right away to discuss your options before postponing your plans to become a homeowner. You will then receive professional guidance on how to decide what is best for you to do right now and how to invest in your future.