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Home Buying As An Investment Is Just the Beginning

Year after year, Americans choose home buying as an investment in their futures. Real estate outpaces any other form of investing, and that includes the stock market.

Yet, wealth-building is just one of the long-term advantages waiting for would-be homeowners. From locking in savings to acquiring more flexibility, there’s no shortage of ways you can make homeownership work for you.

In this blog, we’re sharing the real ways owning a home can improve your life.

Keep reading for the expert insights you need to make your move.

Not a saver? Well, you are now!

Think of a house as a savings account you can live in.

What do we mean by this, exactly? How are you saving money if you’re taking out a loan?

Home equity is the amount your home is worth subtracted by the amount you owe. This means that with each mortgage payment, you’re getting your money back, plus the appreciation of your home’s value.

Your home lets you achieve two things at once:

1. You get a place to live that you can call your own.

2. You’re building equity over the long term.

Homeownership is a great way to ensure that you have a healthy amount of liquid capital available in the form of equity. This is great news for anyone who may struggle with saving money or who prefers other investing strategies.

What other investment lets you save money and build wealth just by living in it? It’s no wonder that more Americans own homes than own individual stocks.

BONUS FACT: Remember that every time you pay your mortgage, you’re paying yourself!

You have a buffer against inflation and rental markets

Here in the Bay State, we know what it’s like to deal with sky-high rental costs. Now that we think of it, life in Massachusetts can get pricey no matter how you slice it.

However, if you own your own home, you’re relatively immune to a lot of these issues.

Think about it like this:

  • High rental costs don’t affect you. That is unless you own an income property, in which case high costs of living work to your advantage.
  • Inflation impacts you less. Since you’re able to lock in or refinance your mortgage rates, your month-to-month reality won’t change for 30 years.

With interest rates being as low as they are, it’s a great time to consider just how much protection a mortgage can provide you from rising housing costs.

Contact one of our loan officers to learn more about securing your future through an affordable mortgage.

The cost of living is a great segue into the next benefit of owning a home, so let’s dive in.

Be close to what you value

Do your kids love their school, friends, and community? Have you found a job market where you’re in demand?

Buying a home means that you lock in a monthly rate in a neighborhood that you chose. Imagine your kids needing to change schools because your rent was increased. You could also end up commuting longer hours to your job, also.

Homeownership gives you the predictability of monthly payments and grants you stability so that life has fewer bumps in the road.

Let’s say that you’re a renter now. There’s a solid chance that after all the moving, landlord issues, and rent hikes, you’d be paying less to upkeep a home you own. That means you’d get to save money, avoid costly rent increases, all while owning an asset that helps you build wealth. Now that’s a savvy investment.

Build generational wealth with life’s most important purchase

Let’s say you’ve contacted a loan officer here at MBA, and you’ve nailed down an affordable mortgage. Now you’re ready to break the renter’s cycle and start building wealth.

The good news here is that you’re not only building wealth for yourself, but you can leave it behind for those you love, as well.

It’s not possible to leave your rented apartment to your children, a spouse, or even a charity, but all that is possible when you own the asset.

However, this doesn’t just make good sense financially. There are personal reasons why people may want a home to pass on someday.

This is an especially attractive option for homeowners who are in it for the long-haul, or what we call your “forever home.” These are homeowners who have no intention of moving. Sometimes they build their houses, or sometimes they inherit themselves, but either way, the property retains a sentimental value that’s often more important than money.

Bottom line

Homeownership is multifaceted and gives serious advantages to those who take the step to mortgage a property. From saving money to building generational wealth, home buying as an investment makes good sense.

Our team of loan officers are here to guide you through becoming a homeowner on your terms. Whether you’re a first-time home buyer or you need to freshen up your loan, we’re here to help.

Contact us today to start experiencing the benefits of getting the keys in your hand.

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