For decades, the American Dream was to own a home. This notion has become antiquated in recent years, with more and more people choosing to rent well into adulthood. According to Andrea Riquier of realtor.com, the amount of first-time home buyers have dwindled. The reason for this decline varies, some do it to avoid locking themselves down to one location, while others do it to prevent themselves from having to deal with all of the financial restraints and other responsibilities of paying a mortgage. Finally, with the housing market crash still fresh in the minds of many people, taking that first leap into home ownership still seems intimidating and risky to some.
Despite these concerns, there remain many advantages to buying a home. Rent prices are continuing to skyrocket, especially in Denver, and they show no sign of slowing down. Even if you have rented somewhere for years, landlords are allowed to raise your rent, within a certain percentage every year. With a home loan, you would be able to lock in one steady payment for the long term. Furthermore, home loan rates are at their lowest point and are not rising nearly as quickly as rent prices; making home ownership the better option for anyone with the capital and desire to own their own home.
Apart from the home loan rates, the other advantage of buying a home rather than renting one is the fact that you are able to build your equity. Obviously, when you rent a property, the only person who is really gaining anything from the exchange is your landlord. Owning a home, as opposed to renting, builds equity. Though you still must make monthly payments, these payments are ultimately adding to your net worth, rather than detracting from it. In fact, home ownership is the single easiest way for private individuals to build equity and credit. On top of everything, the timing is ideal for first time home buyers to enter the market, as rates are much lower than they have been recently. Taking out a favorable mortgage now may be the single best financial decision you can make as a young adult. It is an economically beneficial move, particularly if you plan on staying in one city for an extended period of time. Even if you do decide to move, selling your home will enable you to purchase a new place of residence, wherever your life takes you.