This is a friendly reminder for anyone on the fence. You most likely can make the purchase, even if you think you can’t. The best place to start is by asking questions and understanding the process + your reasons “why”. I love talking this topic! Here’s a couple nuggets.
Your house will likely be your biggest asset. This may not be news to you but we all know someone who may still be renting, mostly because the idea of owning can seem overwhelming or they need some help getting started.
Lots of first-time homeowners tend to initially look at buying a home as a debt to incur rather than an asset to obtain but owning a home can help you build wealth and improve your finances. Full stop. Especially, in retirement, it can prove a much-needed source of financial support. That last part is really important and easy to overlook. Oh yea, you will want to retire someday, sooner than later! So, even when you’re 25 years young, having a plan to save as early as possible can be critical to an enjoyable, hopefully healthy and worry-free retirement.
Here are a few simple “why’s” and we’re here if you need more:
Home equity! This is the difference between the home's fair market value and the outstanding balance of any liens on the property (i.e., your mortgage). You can tap into that by taking out a home equity loan or home equity line of credit (HELOC). These can be great options when you need cash or for covering medical bills, paying off higher-interest debts, or funding home improvements.
Your home can become a source of income! You can rent out your home. If you rent out a room or the whole home for short- or long-term, you are paying down your mortgage and potentially making some passive income. Make sure to learn about local guidelines & restrictions.
You can sell and use the profits. Lots of people of all ages choose to sell their homes and “right-size” to a smaller property at some point. You can use the proceeds to support your travel fund, investments, or retirement — also, a smaller home can be easier to maintain if you like to travel or want less responsibility as you age.
If you have questions, reach out to me! Even if you aren’t ready to buy now…let me help you build the plan. Home-ownership is for all.
Do you know someone on the fence about buying a home? Forward this article. It could change their life… okay dramatic much…but also very true! This could be their sign!