The benefits of homeownership are undeniable, some even consider it to be the “American Dream”. Buying your first home can provide financial and emotional security, a sense of belonging, and an opportunity to build equity. Here at the Turner Team, we want to see you succeed financially and one way to do so is making the long-term investment in homeownership.
Stable Monthly Payments
When deciding whether to continue to rent or to buy a home, one thing to consider is your monthly payment. Sure, at first glance, renting seems to provide a stable monthly payment but you must consider that typically rent steadily rises each and every year. In Oregon, the maximum rent increase for 2021 was 9.2%, which may not seem like a large number in the short term, but in the long run that is more money out of your pocket and into your landlord’s. By owning your own home your monthly mortgage payment goes toward your investment and offers stable monthly payments in the long term, which is beneficial for budgeting and peace of mind.
Opportunity to Build Equity
In the last 12 months, the average homeowner gained approximately $33,400 in equity. So what does that mean for you as a first time homeowner? The market right now may seem crazy, and you may be wondering if now really is the best time to purchase a home, but let me give you some insight.
The median home price in Portland as of July 2021 was $549,000, with an average annual appreciation rate of 5.86%. This annual appreciation rate places Portland in the top 10% nationally for real estate appreciation, making Portland homes an excellent investment. Right now if you were to buy a home for $549,000 with this appreciation rate, in five years that home would be worth about $730,000.
Think of your home purchase as a savings account, instead of paying rent to your landlord you are now putting your “rent” into that savings account and watching your money grow as your home value appreciates.
Freedom to Make Changes
Have you been renting your home or apartment, but dreaming of having new paint or an upgraded kitchen? When you own your own home, the opportunities for customization and change are endless! Being a homeowner you are free all your HGTV inspiration dreams come true. Not to mention, these changes also add value to your home in the long run, so those changes just add to the savings account we talked about.
Owning your own home offers an extreme increase in privacy compared to renting. As a former renter, nothing compares to the annoyance of unannounced drop ins, thin walls, and noisy neighbors. Sure, you never know how quiet your future neighbors will be, but you do have a lot more space between you.
If this all sounds great to you, the Turner Team is here to help. Being a first time homebuyer can feel like navigating a maze, confusing and without direction, which is why it is important to choose a great realtor to guide you through the process and advocate for you!