Homeownership is shown to have long-term benefits
Should you buy a house? There are big-picture benefits if you’re financially prepared to do it.
Here are the takeaways:
- As the housing market cools, many homebuyers are wondering if it’s still a good idea to buy a house. Are you one of them? If so, it might help to consider homeownership’s broader benefits.
- When you become a homeowner, you begin accruing home equity. (Read more about this here.) As home equity increases, it helps build your prosperity. Since 1991, average U.S. home values have appreciated by more than 290 percent.
- Homeownership can have significant financial advantages when you look at the overall picture. If you’re preparing to buy a house, it’s a good time to connect with a local Loan Officer to learn more about what’s going on in your market.
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The unexpected way Millennials are Building Prosperity
There's an interesting shift afoot in the Millennial homebuying market. While this step may not be right for everyone, Mynd’s 2022 Consumer Insights Report shows that some Millennial and Gen Z buyers are using homeownership to build prosperity in a less traditional fashion. According to the report, younger Americans are taking a different path toward homeownership than previous generations.
The report went on to say: “A growing number of Americans are choosing to make their first real estate purchase as an investment property.”
Rather than buying a dream home and moving into it, some younger buyers are instead purchasing a house that can be used as a rental property. “Almost half of Millennials and Gen Z (43 percent) are considering buying an investment property compared to only 9 percent of Baby Boomers and 27 percent of Gen X,” the report found.
Why start with an investment property? A homebuyer might do this if they feel they’re unable to afford a house where they currently live—typically, in an in-demand neighborhood or city with higher housing prices. Instead of putting homeownership on hold and continuing to pay rent, they might buy a house in a lower-cost area and use it as a rental.
Though this option isn’t for everyone: For some buyers, it’s a win-win. A homebuyer can continue to reside in their city of choice, while owning a home that accrues equity and generates rental income.
For other buyers who aren’t ready to become landlords, homeownership is still a top priority. Among those polled, the Mynd report found that most people continue to value homeownership as an important life achievement. Much of this has to do with homeownership’s ability to Build Prosperity, with the potential to provide financial stability in the years to come and an inheritance for the next generation.
“Nearly two-thirds of Americans (65 percent) see homeownership as a means of building intergenerational wealth,” the report noted.
Homeownership never goes out of style
Homebuying trends may come and go, and the housing market will always fluctuate. But becoming a homeowner gives you the chance to begin Building Prosperity for your future. Is the time right? Connect with your local Academy Loan Officer for personalized guidance.
This is for informational and educational purposes only and not intended as an advertisement as defined by Regulation Z. Please consult a trusted professional as personal circumstances may vary. No specific results are guaranteed. MAC1123-1484063.