If you are a millennial in this economy, you are probably not saving to buy a house anytime soon as recent studies show a stark decline in home ownership among adults ages 25 to 34. Although many individuals such as yourself know of the benefits associated with being a property owner you, along with a host of others in your generation, choose to rent from a landlord instead. While you may not be making plans to call a home your own in the near future, there are a number of reasons why you should consider investing in real property sooner rather than later.
Reason #1: FHA regulations are not stringent
The average borrower going the way of traditional banks for home loans is only approved when he has at least a 700 credit score and twenty percent of the asking price as down payment. Such requirements are in addition to providing years of work experience and good rental history. The Federal Housing Authority (FHA), however, grants borrowers loans with a minimum 620 credit score and three percent down payment. Granted that you have to be a first time home buyer to receive such deal, but that’s not a problem for a millennial such as yourself.
Reason #2: It’s cheaper to own
Even with the water and trash bills coming out of the budget, you still pay less when you own. Studies show that millennials pay more in rent than those older adults who pay monthly mortgages. In addition, living with a steady monthly payment provides more relief than constantly being in fear of the landlord raising the rent. How’s that for stability?
Reason #3: Other financial perks are associated with ownership
Tax breaks are great for first time home buyers during tax season, which is definitely something that will make you smile. Even repairs, such as solar power upgrades, can be counted in your favor when filing. Owning a home also comes in handy when you are in a financial bind. Refinancing is the best way to get a large sum of money quickly when hard times or emergencies arise. The funds accrue every month that you pay your mortgage on time, which means that your diligence literally pays off.
Caymus Realty Solutions is your one-stop real estate site for buying and selling homes. We pay cash for homes and sell property at fair market price. Call us to learn more about our process.