As the effects of the pandemic lessen and inflation decreases, the economy is settling down. The housing market is slowing, too, so buying a home in 2023 might be a good move.
Set aside your efforts to prepare for a recession right now. Your home is where you live, create memories, and rest from life’s challenges.
You deserve to buy a house that you can turn into a home, as long as it's within your budget. Here are seven solid reasons why you might want to do this in 2023.
Get off the rent roller coaster
Let’s start with the top reason why buying a house makes sense: You just want to stop looking for ways to pay the rent altogether.
Between having rules for what you can and can’t do with the property and no return on your investment, renting is paying someone else when you could be building equity in your own home.
There are increased costs of owning a home, including property taxes, insurance, maintenance, and mortgage payments. But some of those costs are tax-deductible.
If you create a solid budget to cover these costs, you don’t have to worry about them. Plus, the joy of owning your own place can’t always be measured in money.
Having your first child really does change everything. You start thinking about daycare, school, and kid-friendly activities in an area.
The hip and trendy neighborhood you loved when you started your first job may not have the amenities you need when you’re growing your family. Having children is also a huge impetus for buying a home.
Take time to think about what area would be best for your growing family. Is it more important to be in an area with more young families, or perhaps you’re looking for a better balance between kid-friendly stuff and adult venues?
It’s important to find ways to make extra money to support not just your growing family but the increased costs of becoming a homeowner.
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You finally have a down payment
One of the greatest barriers to entry into the housing market is the down payment. Ideally, you want 20% of the home price to avoid paying for private mortgage insurance (PMI).
But once you have enough money saved, it’s time to use it, even though it might feel emotionally hard to let go.
You can’t time any market, including the housing market, so you might as well jump in when you’re ready. You should shop for the best mortgage rates to lock in monthly payments that you can afford.
You have job security
If you're in an industry that’s stable or growing and you like the town where you’re living, you might want to put down roots. In this case, buying a house makes a lot of sense.
Having confidence in your work situation is important when you’re making what will likely be the largest purchase in your life. By buying a house, you may not only enjoy where you live but also become part of a larger community that will bring other benefits.
You have to relocate
If you get an offer letter after a job interview, it’s definitely time to celebrate — even if it means moving to a new city. Relocation is the second most common reason people buy homes.
With the unemployment rate at a record low, employees are in demand, and employers are casting a wide net to find quality hires. You may find yourself recruited for a new job in a new location in 2023.
It’s usually smart to rent for a year to be sure you like the job and the new city. But if you have a family or are selling a home, you may want to buy right away.
You have extended family
A house is not just for ourselves, but for the people whom we love most in life. If you have extended family in an area, a house creates another social space as well as a place for people to go when they need support and care.
Sure, vacation rentals are fun, but there’s something magical about having all of your favorite people enjoy themselves at your house.
Retiring to your dream area
Retiring from work is what really makes those “golden years” golden. And if you no longer need to live in the area where you worked? It’s time to pack your bags and find a place where you can live the life you’ve envisioned. After all, you’ve earned it.
About 20% of people move after they retire, and with 10,000 Americans a day hitting age 65 according to the 2020 Census, a lot of people are going to be buying homes in new places.
Buying a house is an important financial decision, especially if you want to avoid wasting money on buying the wrong house. With housing prices coming down from their highs, it may make sense to consider buying now.
Whether you’re a first-time buyer or a retiree who’s downsizing, studying your desired housing market will help you make the best choice — and avoid buyer’s remorse.
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