June is National Homeownership Month!
As REALTORS we support the right to home ownership and believe it is a tremendous way to generate wealth. However, buying is not always the universally correct answer. There’s no need to make it overly complicated, but the guideline we often give our clients is that you need to plan the own for four years. Why does it take four years?
- Down payment costs
- Maintenance costs
- Taxes and Insurance
- Closing costs when you sell
While you might very well get a check at closing in a much shorter time frame than four years. When you go back and factor in these other costs that renters typically don’t have to deal with that is where the four years of equity comes into play to make it a profitable venture. This gap only widens the longer you own the home. While 2021 was a large outlier in price increases, and will swing that time frame in the short term if you bought in the last twelve months, we don’t expect that to repeat any time soon.
When you’re thinking about buying ask yourself if you believe you’ll be in that home for four years. If the answer is yes then it can be worth a little pain and extra effort to purchase a home for the longer term benefits and equity. It’s our job to guide you through the process and we will be with you every step of the way. From connecting you with local lenders we trust, guiding you through how to make an offer in this market, walking you through the inspection reports, and being by your side as you sign the closing documents! One of our full time REALTORS will always be there for you. Call us if you have any questions about how you can begin the journey to home ownership and begin building additional wealth today!