Invest in Yourself by Owning a Home

<article class="post-831314 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-831314"><span class="entry-date">October 25, 2023</span><div class="entry-header center-block text-center"><h1 class="entry-title">Invest in Yourself by Owning a Home</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Invest+in+Yourself+by+Owning+a+Home&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Finvest-in-yourself-by-owning-a-home%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Invest in Yourself by Owning a Home Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20231025-Invest-in-yourself-by-owning-a-home.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width="358"/>
<p>Are you wondering if it makes sense to <a href="https://www.simplifyingthemarket.com/2023/10/17/how-buying-a-multi-generational-home-helps-with-affordability-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buy a home</a> right now? While today’s <a href="https://www.simplifyingthemarket.com/2023/10/16/are-higher-mortgage-rates-here-to-stay/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a <a href="https://www.simplifyingthemarket.com/2023/09/21/the-many-non-financial-benefits-of-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeowner</a>.</p>
<h4><strong>Home Values Appreciate over Time</strong></h4>
<p>There’s been a lot of confusion around what’s happened with home prices over the past two years. While they did dip ever so slightly in late 2022, this year they’ve been <a href="https://www.simplifyingthemarket.com/2023/10/03/home-prices-are-not-falling/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">appreciating</a> at a more normal pace, which is <a href="https://www.simplifyingthemarket.com/2023/09/26/the-return-of-normal-seasonality-for-home-price-appreciation/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">good news</a> for the housing market. And while looking at price movement over just a year or two can make you worry prices are usually this unpredictable, history shows in the long run, <a href="https://www.simplifyingthemarket.com/2023/10/12/growing-your-net-worth-with-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home values rise</a> (<em>see graph below</em>):</p>
<p> <a href="https://www.simplifyingthemarket.com/content/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20231023/20231025-Price-Appreciation-over-the-Last-60-Years.png"/></a></p>
<p></p>
<p>Using data from the <em>Federal Reserve</em> for the past <a href="https://fred.stlouisfed.org/series/ASPUS" rel="noopener noreferrer" target="_blank">60 years</a>, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing <a href="https://www.simplifyingthemarket.com/2023/09/27/why-todays-housing-inventory-shows-a-crash-isnt-on-the-horizon/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">crash of 2008</a> that caused prices to break the usual trend for a time, but overall, home values have been consistently on the <a href="https://www.simplifyingthemarket.com/2023/10/11/the-latest-expert-forecasts-for-home-prices-in-2023/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">rise</a>.</p>
<p>Increasing home values is one great reason why buying may make more sense than renting. As prices rise, and as you pay down your mortgage, you build equity. Over time, that growing equity gives your <a href="https://www.simplifyingthemarket.com/2023/10/12/growing-your-net-worth-with-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">net worth</a> a boost.</p>
<h4><strong>Rent Keeps Going Up Through the Years</strong></h4>
<p>Another reason you may want to consider buying a home instead of <a href="https://www.simplifyingthemarket.com/2023/10/13/the-difference-between-renting-and-buying-a-home-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">renting</a> is the never-ending rent hike. If you’ve ever felt the pinch of rent increasing year after year, you’re not alone. That’s because, rents have <a href="https://ipropertymanagement.com/research/average-rent-by-year" rel="noopener noreferrer" target="_blank">climbed steadily</a> over the past six decades (<em>see graph below</em>):</p>
<p><a href="https://www.simplifyingthemarket.com/content/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank"><img decoding="async" src="https://files.keepingcurrentmatters.com/content/images/20231023/20231025-Increase-in-Rents-over-the-Last-60-Years.png"/></a></p>
<p>By <a href="https://www.simplifyingthemarket.com/2023/10/02/unpacking-the-long-term-benefits-of-homeownership/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buying a home</a>, you can lock in your monthly housing costs and bid farewell to those pesky rent hikes. That stability is a game-changer.</p>
<p><strong>In the end, it all boils down to this: your housing payments are an investment, and you’ve got a choice to make.</strong> <strong>Do you want to invest in yourself or your landlord?</strong></p>
<p>By becoming a <a href="https://www.simplifyingthemarket.com/2023/10/06/how-homeowner-net-worth-grows-with-time-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homeowner</a>, you’re investing in your own future. When you rent, that’s money you never get back.</p>
<p>When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the <em>National Association of Realtors</em> (NAR), <a href="https://www.forbes.com/advisor/mortgages/real-estate/is-buying-a-home-worth-it/" rel="noopener noreferrer" target="_blank">states</a>: </p>
<blockquote><p><em>“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”</em></p></blockquote>
<h3>Bottom Line</h3>
<p>When it comes down to it, buying a home offers more benefits than renting, even when mortgage rates are high. If you want to avoid increasing rents and take advantage of long-term home price appreciation, connect with a local real estate agent to go over <a href="https://www.simplifyingthemarket.com/2023/09/22/how-remote-work-helps-with-your-house-hunt-infographic/" rel="noopener noreferrer" target="_blank">your options</a>.</p>
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