There are many reasons why someone might want to buy a home. When you choose a home for yourself, you’re picking a place where you and your family will grow together and create special memories. This is an emotional reason for buying a home. Of course, you’ll want to consider the financial reasons for buying a home as well. At times, people will offer the argument that “buying a home is an investment.” Is that true? The answer to that question can be different depending on the particular situation you find yourself in. So, is the home you’re buying an investment.
Buying a Home Gives You Equity for Your Cost of Living
In simple terms, what people are saying when they say that “buying a home is an investment” is that by buying a home, you’re moving toward owning the place where you live. There will always be a cost of living that you need to account for. When you live in a rented building, you pay rent each month. When you own a home, you pay your mortgage each month. Eventually, you will own the place where you live outright. That’s equity. By purchasing a home, you gain equity for your monthly cost of living payments.
Your Home Will Increase in Value Over Time, Like All Other Homes
Another great benefit that comes with purchasing real estate is that in general, the value of said real estate is always increasing. However, that’s true of the real estate around you as well. If you hope to purchase your home now, sell it in 10 years and then buy another home in the same area, you’re probably not going to net a profit. The gains that come from your real estate purchase will only be seen when you sell that real estate. If you choose to purchase another piece of real estate for the same price, you’ll be starting anew. That doesn’t mean that you’re not gaining value by purchasing a home.
You Have to Decide Why You Want to Purchase a Home
Homes aren’t like stocks generally. Making a primary home purchase and then flipping it quickly to try to pocket a profit isn’t really a viable strategy, and it creates plenty of lifestyle stressors. You should purchase a primary residence because it’s a place you want to live. Take care of the building, pay off your mortgage, and then continue to live in the home or downsize to a smaller dwelling and pocket the profits from your sale.
Work With Bill Swanson to Purchase Your First Home
Your home is an investment, just not necessarily an investment property. If you want to understand more about home-buying strategy or the home-buying process, contact Bill Swanson. He’s been helping families buy and sell homes in Omaha for over 30 years. Contact Bill Swanson’s Omaha, NE office at 402-679-6566 to get started.
Buying or Selling a Home in Omaha? Call Bill Swanson Today!
As a long-time resident of Omaha, I know the area and the surrounding communities intimately, and can give you access to information that you could never find online. If you want to know more about the community, are looking to buy a home in a new one, or need the help of an agent to sell your home quickly, conveniently, and successfully, then email [email protected], or call (402) 679-6566.