Five Reasons for Buying Your Own Home Right Now

Image courtesy of Vicki via Flikr.com

Image courtesy of Vicki via Flikr.com

There are many people debating whether to invest in real estate or not at the moment. This is a big decision as it costs a lot of money to buy a home and takes a lot of commitment. However, at the moment, you could find that it is the perfect time to invest in property for the following reasons.

Interest rates are low
At the moment interest rates are at a low in many countries. Although they have been low for a long time, it seems that they are unlikely to rise for quite a while. It is worth taking advantage of the low lending rates, especially when you are borrowing such a big sum of money. The rates are likely to rise of course, at some point. However, the longer you can take advantage of the low rates, the more money you will save.

It is never too early to invest
You may think that you are too young to start worrying about investing in anything. However, consider that the value of your investment i.e. your home, will go up each year. With money invested from a young age you will see the value of that money growing during your lifetime. The earlier that you do it, the better the value of your investment will be. You will also be able to pay off your mortgage at a much younger age.

House prices almost always go up
There are very few homes that do not increase in value, in the long term. You may find that temporary drops in the housing market could reduce the value in the short term. You will need to keep up maintenance on your property, but this should not cost more than the increase in value. The main risks to property value would be if it flooded, suffered from subsidence, the area suddenly lost value or you found it to be worth significantly less than you paid for it once bought.

You will start to save money right away
Mortgage payments tend to be cheaper than rent, particularly private rental. This is because the home owner needs to make enough money from the rental income to cover the mortgage repayments, letting agent fees, safety checks and maintenance. This will be less than you would pay on a mortgage and maintenance on the same property if you bought it.

Housing demand is rising
The demand for housing is rising at the moment. This is both from people who want to live in a home that they own, plus people who want to buy a second home to get rental income from. This means that the supply of houses is falling especially as the amount of houses being built is many places is not keeping up with demand. This means that if demand rises, the house prices will rise steeply and it could mean that in the future houses will become less affordable.