Whether you are single or married, owning a home gives you greater privacy and a nest egg that you can renovate anyway you like. And if you think you have to wait until you are married to start saving for a home, consider this: twice as many single women buy houses compared to their male counterparts.
Also, according to the National Association of Realtors’ Profile of Buyers and Sellers report, owning a home is a way to control your monthly expenses. Here are six key reasons you should be saving for a home today.
It’s a Smart Alternative to Renting
A Builders Digital Experience survey showed 23 percent of single women want to avoid rising rent by owning a home. Even if it’s more expensive to pay a mortgage than rent, you build up equity as you pay off the mortgage. Likewise, the home itself goes up in value.
The Trends That Push Up Prices Remain
It’s not a good idea to time the real estate market by waiting for the next housing decline. Factors that push housing prices up include the retiring baby boomer population. With 10,000 boomers retiring a day, that factor will not change anytime soon.
Interest Rates are Starting to Creep Up
Anyone who got an interest rate of less than three percent after the recession did extraordinarily well. But don’t forget about the historical concerns. In the 1980s, interest rates hit the double digits. So, lock in at a reasonable interest rate for more buying power.
4. Tax Benefits and Savings
Even if you don’t itemize your taxes, there are some benefits to owning a home. If you work at home with a home office, you can take a home office deduction including a portion of the utility costs. Homes are part of an estate if you pass away, which leaves your children an inheritance.
5. You Build Up Wealth
Homeowners have substantially more wealth compared to renters. You can tap the equity in your home with a home equity loan in financial crisis while renters have fewer options.
6. You Have More Freedom of Expression
While some homeowner’s associations forbid people to paint their houses certain colors, there is still considerably more freedom that goes along with owning a home. Do you want to give your bathroom a facelift? That’s your choice. You don’t have to obtain permission from your landlord.
Start saving for a home soon. Remember, most first-time homebuyers qualify for low down payment mortgages. A good rule of thumb is to save 10 percent of your paycheck. Also, you can invest in a Roth IRA that allows you to use a portion of the gains for a first-time home purchase. You have many options when it comes to saving and financing a home, so explore them thoroughly.