Long-term Value of Buying a Home When You’re Young

December 27, 2016

Long-term Value of Buying a Home When You’re Young

It’s difficult to see too far into the future when you’re young and just starting out on your own. However, having some good foresight can pay off with big dividends when you’re older. Home ownership is a big responsibility — one that many young adults don’t think they are ready for. But, there are many reasons it’s a good risk that will deliver long-term benefits.

  1. A home is an inflation-protected physical asset. Many investments don’t have the promise of keeping up with inflation. As long as you purchased your home at a fair market value, it should retain its value better than stocks, bonds or other investment products.
  2. You’re spending smarter. As you pay your mortgage monthly, that money will go back into your pocket as the value of your home. Eventually, once the mortgage is paid in full, you will own your home and have something to show for the money you spent over the years. If you’re a renter, that money never returns to you as valuable physical property.
  3. You will receive tax breaks. Homeowners receive numerous tax breaks for credit for the interest they pay on their mortgages. As you make improvements or update your home through maintenance or repairs, other tax breaks may be available that will help you financially.
  4. Buying a home early on gives you equity to build a future on. Many homeowners find that they may take out a second mortgage to pay for expenses throughout life, such as healthcare costs, home remodels or other situations when you need funds. Additionally, if you own a home, you have something of value to sell to obtain a down payment on a nicer, newer home that might fit your lifestyle better as your life transitions.

U.S. News & World Report also suggests that young people are benefited by buying a home early in life

If you’re ready to take the next steps toward home ownership, let ProX Realty help. Call them today: 620.249.5767.