Friday, March 19, 2021 / by Jordie Quintos
If you're like most people weighing whether to make their first home purchase, you've probably listened to the advice of friends, family, and co-workers, many of whom are likely encouraging you to buy a home. However, you may still wonder if buying a home is the right thing to do.
Having reservations is normal. The more you know about why you should buy a home, the less scary the entire process will be. It's reasonable to double-check yourself, though. Real estate is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. You may even use it as a part of your overall strategy to begin building wealth.
Historically in real estate, your risk of loss is minimized by the length of time you hold on to your property. When the market improves, so does the value of your home, and as a result, you build equity. The risk never changes in the stock market and there are numerous factors beyond your control that can negatively impact your investment. Real estate gives you more control of your investment because your property is a tangible asset that you can leverage to capitalize on numerous revenue streams, while enjoying capital appreciation.
There will always be value in your land, and value in your home. Other investments can leave you with little to no tangible asset value such as a stock which can dip to zero, or a new car which decreases in value over time. An investment in real estate is not only a safe financial investment, it is also an investment that can provide years of fun, happiness and priceless memories that will last a lifetime.’
Before finalizing your decision, it is best to widen your options and know what you are truly looking for in a home. List down the features your residence should have. Ideally, the location should also be one of the key aspects when deciding where your property should be located. Here is a list of reasons why this would greatly benefit you.
1) It appreciates over time
Real estate is one of the tangible properties that has a long-term and stable growth in value. Unlike other worldly possessions like gadgets, cars, and other material possessions that depreciate, real estate is the only tangible thing that appreciates over time.
This remains true even in years which could be dangerous for housing. You would be surprised to find out that values are still up on a cumulative basis. This is because there is a continuous demand for housing.
2) There is pride in ownership
As we have stated above, buying a house and lot gives you a sense of pride and accomplishment. In fact, it has been shown that pride of ownership has been the reason why homebuyers yearn to own and purchase a house and lot.
Having your own home gives you wide leverage when it comes to design and renovations as opposed to owning a rental or a condo unit. You can tear down walls at your own liberty or paint the ceilings however you want. Finally, it gives you and your family a sense of stability and security. In essence, it is making an investment in your future.
3) You can get a good deal
Depending on how you play your cards, buying a house and lot can guarantee you a good deal—even if you choose to play hardball. This means we are not about four to five years into the biggest housing bust in modern history. And prices have come a long way, which are about thirty percent from their peak.
4) You will get a better home
More often than not, scouring properties for rent can be a real hassle. The best property to rent would be a condominium unit. But as monthly rentals are steep, renting one for an indefinite time is not exactly a practical route.
When it comes to looking for a place to settle in—especially for a long period, it is best to buy off property instead of renting it. Apart from having that fresh new feel, houses and the way these are built are getting more sophisticated over the years.
5) They are not making any more of it
Although technically, real estate developers are making more houses, land is not something that the world has an abundance of. This is why investing in a house and lot is a sound financial decision.
Land is an extremely valuable resource. Land is that one finite asset that the world would run out of someday, and owning a piece of it can be financially advantageous. If you invested in property as well as the land and intend to hold on that for the long term, you will be surprised that it can be a potential goldmine—much more profitable than any luxury car.
Finally owning your very own home is a lifelong dream most individuals have. In the long haul, renting just does not give you the same advantages as owning your very own property. So, start listing the reasons why you should own your very own house and lot today and use them to complement the reasons given above.
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