“The market is great! Interest rates are still low! It’s a buyer’s market!” We’ve all seen plenty of hype about how NOW is the best time to buy a home. A lot of that hype is actually valid advice if you’re wondering when to buy, but it won’t do you a bit of good if you’re still wondering whether you should buy a home at all.
To help you make the choice that really works for you in the long run, here are some good reasons to buy a home—in any economy.
The days of flipping houses for magic money are gone. If you buy a home today, don’t expect to get your money back any time soon unless you’re putting in a lot of sweat equity improving it. The days of magic money and bidding wars are gone.
Still, if you’re living in it, a home is still one of the most reliable long-term investments you can make. You’re going to be paying to live anywhere, even as a renter. If even some of that money comes back to you in equity when you sell, you’re ahead of the game. And if you stay in your home for long enough, at some point, you’re done, and left with only taxes and repairs!
There are very few cases in which inflation is your friend, but home ownership is one. Your mortgage paint may seem hefty now, but in 20 years, it might be a drop in the bucket. According to U.S. Census data, the median California home price in 1970 was $66,400. With 20% down at 10% interest for 30 years, that’s a monthly mortgage payment of $466.17. While that was a substantial amount of money in 1970, by the time the mortgage expired in 2000, many car payments cost more, and renting a similiar home would cost several times as much.
Theres a reason the federal government has encouraged home ownership for decades. Buying a home creates stability for families, neighborhoods, and cities. It also creates memories by allowing you to call your own shots and make your own rules about pets, paint, and the traditions you want to create. And in the end, that might be the most important benefit of all.