Homebuying Hurdle: Permanence
'I love the mobility that renting allows me.'
Think about where you want to be in twenty years. Is it in your current neighborhood? Or with a new job in a new city? A view of the skyline or a white picket fence? Will you want to have children or just a few pets? With life’s twists and turns, you never really know where you’ll end up. This may make the idea of purchasing a home seem so...permanent. However, if your near-future plans include staying where you are for more than five years, purchasing a home is definitely something to consider. Much like a fine wine, the investment in your home will improve over time. If the market is healthy your home has the ability to appreciate in value, allowing you to recoup some of those purchasing costs (and hopefully a little extra!)
You don’t have to live in this home forever and, according to statistics, you likely won’t. Homeowners typically live in their homes for about 10 years before selling. So when your current home doesn’t quite go along with your lifestyle changes, the option to sell is always on the table. In recent years, sold homes have been on the market for a median of just three weeks – a historical low! With that kind of flexibility, moving in a moment’s notice may be easier when you have to sell rather than jump through hoops to get out of your lease. The benefits of selling may be dependent on your location but it's not your only option. Many are choosing to make a little profit on the side by renting out their home to tenants or guests. Whether you choose to become a part-time landlord or use home-sharing sites like Airbnb, renting out your home can provide some extra cash flow and allows you to continue to build equity. As much as we want to, we can’t plan for every curve life will throw at us. It’s likely the home that is perfect today, won’t be perfect home ten years from now. But what no longer fits your lifestyle may be the perfect match for someone new. Buying a home may seem like a restriction however with the options to sell within a few weeks or rent it out whenever you want, owning a home may be less permanent than a 12-month lease!
Buying a home isn't forever, but it is a smart investment for today.