Congratulations! You have managed to secure a good life for yourself, and your family. But now that you have gained financial stability, how do you make sure it not only lasts, but grows? Building real family wealth can seem like a difficult task, and you may be nervous about making any decisions that could have the opposite impact. When looking at an investment like real estate, you may be especially hesitant.
Don’t worry, everyone has those fears. With the housing marketing crash of 2008, the world as a whole had a bad taste left in their mouths. Not to mention a deep terror at what might happen if another bubble were to form and burst, leaving homeowners at risk of losing their houses.
In spite of past failures, real estate still remains the most stable and profitable way to create lasting family wealth.
Here are some things you need to know if you are considering buying a new house.
Why Buying a House Makes Good Financial Sense
There are many reasons why buying a house is a good financial decision. For one, renting is often the same cost (or more) to a mortgage payment, but without anything to show for the money spent.
Another reason is that the average homeowner has a net worth of up to 45 times greater than a renter, a statistic that continued even after the 2008 housing crisis. Then there is the home equity gained, the many tax credits offered to homeowners, and the increasing value of a property over time.
How To Know If You’re Ready
Not everyone is ready for a house. Some signs that it is time to invest in a place of your own include:
- You are planning on staying in the area, and don’t need flexibility in your location.
- You have a good credit score.
- You plan on spending at least five years on the property.
- You have found a home for sale that you love.
- You have a steady source of income that is unlikely to change.
- You have researched the tax benefits afforded to you.
Your First Steps Towards Home Ownership
Once you have made a decision, it is time to jump in with both feet! Contacting a professional real estate agent is your best bet. Not only are they aware of all of the listings in the area, but they know how to handle the legal and financial aspects of the sale.
You can also look online to find local properties, and contact the agents in charge of their sale.
Find out more about creating real family wealth through real estate at Jensen and Company.