Home isn’t just where the heart is, it’s a place where the journey to retirement really begins for many individuals. Today’s historically low interest rates should be a big catalyst for exchanging your rental or lease agreement for your first mortgage, but many potential home buyers are staying out of the market for all the wrong reasons.
The top reason to consider buying instead of renting continues to be the opportunity to build equity – and future wealth – while simultaneously benefitting from the primary mortgage tax deduction. Yet, the percentage of first-time home buyers fell to 32% of all purchasers in 2015 – the lowest percentage since 1987, according to the National Association of Realtors.
Myths about the size of required down payments, a tight regulatory grip on banks’ ability to lend, credit worthiness and unaffordable prices in key housing markets have disillusioned many first-time buyers. Before you assign yourself sideline status and potentially miss out on your first step to future financial security, review these three important facts:
Home ownership is a rite of passage, but it’s also still an exceptional opportunity to begin your track toward a sound financial future.