{"id":1290,"date":"2020-11-24T15:22:25","date_gmt":"2020-11-24T15:22:25","guid":{"rendered":"https:\/\/phphouses.com\/blog\/?p=1290"},"modified":"2020-11-24T15:22:25","modified_gmt":"2020-11-24T15:22:25","slug":"buying-home-today-good-financial-move","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/buying-home-today-good-financial-move\/","title":{"rendered":"Is Buying a Home Today a Good Financial Move?"},"content":{"rendered":"
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Is Buying a Home Today a Good Financial Move?<\/p><\/div>\n

There\u2019s no doubt 2020 has been a challenging year. A global pandemic coupled with an economic recession has caused heartache for many. However, it has also prompted more Americans to reconsider the meaning of \u201chome.\u201d This quest for a place better equipped to fulfill our\u00a0needs<\/a>, along with record-low mortgage\u00a0rates<\/a>, has skyrocketed the\u00a0demand<\/a>\u00a0for home purchases.<\/p>\n

This increase in demand, on top of the severe\u00a0shortage<\/a>\u00a0of homes for sale, has also caused more\u00a0bidding wars<\/a>\u00a0and thus has home prices appreciating rather dramatically. Some, therefore, have become cautious about buying a home right now.<\/p>\n

The truth of the matter is, even though homes have appreciated by a whopping\u00a06.7%<\/a>\u00a0over the last twelve months, the cost to buy a home has actually dropped. This is largely due to mortgage rates falling by a full percentage point.<\/p>\n

Let\u2019s take a look at the monthly mortgage payment on a $300,000 house one year ago, and then compare it with that same home today, after it has appreciated by 6.7% to $320,100:<\/p>\n

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Difference in Monthly Payments<\/p><\/div>\n

Compared to this time last year, you\u2019ll actually\u00a0save $87 dollars a month<\/strong>\u00a0by purchasing that home today, which equates to over one thousand dollars a year.<\/p>\n

But isn\u2019t the economy still in a recession?<\/strong><\/h4>\n

Yes, it is. That, however, may make it the perfect time to buy your first home or move up to a larger one. Tom Gil, a Harvard trained negotiator and real estate investor, recently\u00a0explained<\/a>:<\/p>\n

\u201cWhen volatile assets are facing recessions, hard assets, such as gold and real estate, thrive. Historically speaking, residential real estate has done better compared to other markets during and after recessions.\u201d<\/em><\/p><\/blockquote>\n

That thought is substantiated by the fact that homeowners have 40 times the\u00a0net worth<\/a>\u00a0of renters. Odeta Kushi,\u00a0Deputy Chief Economist<\/em>\u00a0for\u00a0First American Financial Corporation<\/em>, recently\u00a0said<\/a>:<\/p>\n

\u201cDespite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Renters don\u2019t capture the wealth generated by house price appreciation, nor do they benefit from the equity gains generated by monthly mortgage payments, which become a form of forced savings for homeowners.\u201d<\/em><\/p><\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

With home prices still\u00a0increasing<\/a>\u00a0and mortgage rates perhaps poised to begin\u00a0rising<\/a>\u00a0as well, buying your first home, or moving up to a home that better fits your current needs, likely makes a ton of sense.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

Despite the risk of volatility in the housing market, numerous studies have demonstrated that homeownership leads to greater wealth accumulation when compared with renting. Finish Reading Is Buying a Home Today a Good Financial Move?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[36],"tags":[38,286,111,110,287,18,91,52,9,49,42,63,20,12,48,13,54,47,19],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1290"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1290"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1290\/revisions"}],"predecessor-version":[{"id":1293,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1290\/revisions\/1293"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}