Owning a home will always be a key part of the American Dream – pandemic or not.
Over the past several months, our country has experienced something that has affected almost every aspect of life, and it has changed the way we live…and where we live.
The way the pandemic has shaped (and is shaping) real estate will definitely be the history books someday, or it may even be its own history book.
Buying a home is most likely the largest purchase and the most important investment an American will ever make. As trends are shifting and demographics are changing, many people (mostly millennials) are taking advantage of the lifetime low mortgage rates to make that big decision now.
If you are paying rent, you are paying a mortgage, just not your own.
With rent rates going up and mortgage rates at a historic low, now is a better time than ever to make the switch.
The housing market still stands strong while our world has been shaken.
People are losing jobs, their finances are drastically changes, they are getting tired of big cities, and they are in need of some stability. The “Why do I actually live here?” question seems to be the dinner table conversation, more so now than ever.
Millennials have been renting for most of their lives (other than living at home,) and now is a great time for them to make the jump and become homeowners.
Here’s a fun fact: there’s over one million millennials turning 40 this year alone. People are also beginning to realize that it is actually cheaper to buy a home in the suburbs, than to rent in the big city.
Big cities are losing their appeal, especially since people are either working from home or losing jobs. The other good news is that homeowners receive tax deductions, and a historically high return on investment.
Switching from rent to a mortgage, can certainly feel overwhelming – especially if it’s your first big purchase and investment.
It is important to be wise with your finances as you make that shift, especially since we are living in the age of not knowing what tomorrow holds.
My advice would be to stay in contact with your servicer, as they will always help guide you as a first-time homebuyer.
Run a personal budget each month to ensure that you are prepared and that you stay prepared, but also be mindful that due to Covid-19, there are procedures in place to assist you if you ever fall behind.
Real estate and mortgage professionals have a closer watch on the market now than ever, so I would say it is the perfect time to make the switch and take that crucial step towards the American dream.
I know it feels like 2020 will never end, but the good news is that there is plenty of time left to step out of the rent race and become a homeowner.
Stop putting money into your landlord’s pocket and put it into your own. The pandemic has not ruined real estate, and I can confidently tell you that the headlines that say that are false. The market has bounced back, and it bounced back quickly.
Like I always say, buy real estate and wait, don’t wait and then buy real estate.
Rogers Healy is owner and CEO of Rogers Healy and Associates Real Estate and Healy Property Management.