A Home is a Comfy Place to Live AND a Good Investment
Some of today’s current home buyers look at purchasing a home as just a place to live and enjoy and be comfortable in while others see real estate as an opportunity to grow wealth. Really the purchase of a home is both things.
Making Your Home Purchase a Great investment
Buying at an affordable price and taking advantage of the low borrowing costs that are going on right now can significantly increase your chances of the purchase of your home becoming one of the best investments you will make in your lifetime. Many real estate experts are encouraging potential buyers to seriously seek this smart investment right now.
There is never a guarantee that a home will appreciate in fair market value and not see a decrease in value. (Many of us learned this tough lesson during the big real estate crash and recession of 2008.) The odds according to previous statistics and data, however, do show that home value appreciation odds are much stronger the longer you live in or own a property.
The nationwide average price of a single-family home until October was $260,325. This number is up 19% from October 2010 when the average was $219,035. These stats were reported by the U.S. Bureau of Labor Statistics. Looking back further to 1976 home prices have appreciated an average of 5% per year says CoreLogic’s home price index. Home equity is a large portion of many American’s overall wealth. About 83% of personal wealth comes from home equity at a person’s retirement.
Right now many experts can agree that if you are going to be making a payment for housing anyway, that payment should be made on a house that you own, if possible. This way you gain equity for making that same monthly payment or in some cases a lower one. Especially now when mortgage rates are low.
Home Ownership is a Large Part of Many American’s Lives
As of the end of September 2020, over two-thirds of Americans owned a home, 67.4% to be exact. This is a great number that is only slightly lower than the housing peak just before the Recession in 2008, which was a large 69%.
If you are in a good position to purchase a home, now is the time to do it. It is a very good way to build your overall wealth gradually over a period of time. For more information on homes for sale in Columbus and surrounding areas please contact us any time.