Why should you consider buying a new home this spring? Spring is the busiest time of year for home sales. We believe there are a number of significant advantages to buying a new home compared to renting. According to Trulia, it’s 23 percent cheaper to buy a home than rent one today. Trulia has also predicted that now is the best time to buy a home since 2012. Here are four reasons why you should buy instead of rent:
- Home Ownership Builds Equity: According to the Federal Reserve, the average net worth of a homeowner is $194,000, which is 36 times greater than that of a renter. Homeownership encourages people to save for a down payment and pay down the mortgage principal each month. When you have a home mortgage, you increase your degree of ownership in your home with every payment. Zillow recommends to stay in your home for at least five to seven years for the costs of purchasing your home to be offset by accrued equity, which increases the home value.
- It’s an Investment: It’s definitely a big decision to buy a new home that shouldn’t be taken lightly. However, once you own your home, it becomes an investment in the long run. Eric Drum, Sales Manager at HHHunt Homes, explains, “Owning a home is a great way to have ‘forced savings.’ Your monthly mortgage payment will typically be applied to both the principle and interest on your home. Couple your payments with the rise in home equity and your home becomes a real investment.” For instance, spending $1,200 monthly towards a mortgage rather than paying rent equates to $14,400 in “forced savings” in just one year. Those savings increase your net worth!
- Rental Rates Are On The Rise: Rental rates are increasing while home mortgage interest rates are at historical lows. “According to Freddie Mac’s latest survey, a 30-year fixed rate mortgage has an average rate of 3.89%. Lower interest rates have made home ownership more affordable than ever,” says Drum. “The housing market continues to improve with national home prices increasing over 5%. Consumers buying now will enjoy the financial benefits of a low fixed rate, while building equity in their homes as values increase over time.”
- You Can Customize: Homeownership lets you enjoy the benefits of decorating to suit your taste and maintain your home in a way that fits with your style. New homes in our communities offer a variety of customization options, from the type of materials used and layout of the home to special features. The home styles, sizes, and designs makes it even easier to find the home that fits your needs at the price that’s right for you. Check out some of our tips for decorating for Spring
- You Become Part of a Community: Once you commit to owning a home, you are more likely to become involved in your community because you know you’ll be there for years. You get to know your neighbors, perhaps join a homeowners’ association, or volunteer for projects that benefit the local community. Living in an HHHunt master-planned community means that you also have access to amazing amenities, such as open green spaces, walking trails, neighborhood events, and much more. These amenities and events create a sense of neighborhood spirit among our homeowners!
If you’re considering purchasing a home, we invite you to discover the HHHunt difference in our communities in Richmond and Williamsburg. We believe it’s how you live that matters and we’re honored to build distinctive places where cherished, lifelong memories are made. Visit one of our communities today!