A home is the single biggest purchase most people will ever make and also marks a major life step. There is no scientific road map that dictates the best time to buy a home. One should look at lifestyle, take stock and analyze one’s financial situation, and determine if the timing is right before deciding to purchase a home.
There are a number of both tangible and intangible advantages that home ownership presents that should be considered before taking the plunge.
- INVESTMENT – Every single mortgage payment made is one small step closer to owning a major investment. Every improvement made to this investment not only enhances a lifestyle, it adds value to the home.
- PROTECTION FROM INFLATION – Once a home has been purchased, the bulk of annual housing costs are not exposed to inflation. That means the only housing expenses that inflation will affect are property taxes, homeowner’s insurance, utilities, and maintenance.
- EQUITY – Because a home increases in value even as mortgage payments are being made, most buyers painlessly build equity. Equity creates wealth and can assist in accomplishing any number of financial goals such as paying for retirement, funding a child’s education, or providing a down payment for a larger home in the future.
- SATISFACTION – For most people, home ownership makes life more enjoyable. Whether it’s the pride that comes from decorating and maintaining a home or the knowledge that your family will grow up in the neighbourhood of your choice, the pride of ownership can be life affirming.
