There are many homes for sale in Wake Forest right now. Do you have your eye on one? Could this finally be the time to buy? For many people, the answer is yes! Owning a home brings about many benefits that renting simply does not. It all has to do with accumulating wealth, both for you and your family in the long-term.
When you rent, you're helping someone else accumulate wealth. When you buy, you are putting money into savings every month without even realizing it because of the equity you build in your home. The Harvard University Joint Center for Housing Studies confirms this. One of their studies showed that homeowners acquire 46 times as much net wealth as renters. That is truly an amazing statistic! For every $1,000 accumulated by non-homeowners, those who own a home acquire $46,000. If you do not have portfolios of stocks, mutual funds, and other investments, homeownership is the most reliable way to accumulate wealth.
Over the decades, buying a house has generally shown to be a good investment. The U.S. Census Bureau has a table of historical home values on its website that starts in 1940 and ends in 2000. It uses constant year-2000 dollars for all figures to account for inflation. The report shows that the median home price in 1940, adjusted for inflation, was $30,600. The same figure in 2000 was $119,600. This can be a bit tricky to really understand so think of the last two paragraphs as saying this: you're paying money every month, so you owe less on your total loan amount. At the same time, the actual value of the house is going up. When you choose to sell, you'll make money and walk away with thousands upon thousands of dollars in cash!
Not only does your home's value go up, you also get to enjoy several tax breaks and credits. Mortgage interest and certain closing costs are generally tax deductible. You get most of this relief during those early years when you’re paying the bulk of your mortgage interest. Mortgage insurance and property taxes may also be deductible.
The first experience of buying a house often involves saving up for a while and some serious financial strain. Gradually, though, things do get easier. This is true for two reasons. First, mortgage payments won’t increase with a fixed mortgage. As you establish your career and make wise choices, those payments become more affordable. At the same time, paying your mortgage over the course of a few years means you’re building equity each month. Your home becomes an asset you can sell or borrow against in the future.
If you're currently renting and think you may be in the position to buy one of the homes for sale in Wake Forest, first of all- congratulations! This is a really big deal and something that is going to absolutely change your life. When you buy your first home, you'll begin to enjoy all of these financial benefits. Over the years, your benefits will grow!
