According to the Census Bureau Data, in the fourth quarter of 2020, there were about 82.8 million owner–occupied houses in the United States. This number had considerably increased by an estimated 2.1 million over the prior year. Also, this is the seventh-largest percentage increase in homeowners since 1965.
Why are these People Buying Houses?
All the house-owners can relate to how comforting it is to own a house, which can also be defined as a property of our own that is better than a rental apartment. But what can cause this boom in buying houses?
If we carefully look at the period, we can determine that in 2020 a pandemic hit us all. Consequently, the governments of most of the nations imposed a lockdown. People could not go out of their homes. As a result, the people who already owned a house or an apartment had an advantage over the ones who didn’t own any permanent residence. This is possibly the reason which made many people realize the value of owning a house.
Other Perks of Owning a House
You don’t have to go through the tedious process of approaching and looking for good apartment rental agencies. Keeping aside this benefit of not paying any rent, there can also be a list of reasons which can highly add to the advantage of owning a house like:
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Rental Income
If you are a person who owns more than one house, other places can be rented out to somebody. You will have an extra source of income this way!
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Future Investment
We might have heard many people say buying a house is a Future Investment. This can also be understood as –
- Buying a house is like an investment forever, considering you buy it to live with your family. Additionally, even after several decades, it can be used by future generations. Hence, it can be a very long-lasting investment.
- One can gain through house property not only by putting out new apartments for rent to others but also through capital gain as the property rate increases with time, especially if you invested in a growing/about to grow property.
How Can One Afford a House?
All of us perform different economic activities, and the amount we earn is also different. We also may have a different number of family members. All these factors determine our need and budget for a house. For example, if you are an entrepreneur who is currently living in a rental apartment and may change to some other place sometime, in that case, a rental apartment would be best for you instead of buying a home.
A recent survey states that most Americans can’t afford big houses. Many can’t even afford a small home as well. But some live in houses they can’t afford by squeezing out of their expenditures and, consequently, most other aspects of their life. Yes, we’re referring to EMIs. It is a fixed periodic payment made by a buyer to a seller. The amount is paid off fully over a certain period.
Why Should One Be Careful While Buying On EMI
“We have to give something to get something’’. That’s the same way how EMI works. As we pay in parts instead of a lump sum, we have to pay a sum of interest for that delay.
- While dealing with the process of EMI, one should ensure that the company/person should be trustworthy.
- Maintaining a healthy credit score is a prerequisite to getting a better deal from lenders.
- Taking help from an EMI calculator, something like a Home EMI calculator, can help you analyze your capacity to repay a home loan.
- Never default in making loan payments, as defaulting EMI will affect your credit score and get you penalties. Lenders mark such defaulters and might give this information to the credit bureaus.
The Right Time and Need To Buy a Home
As each one of us has a different budget, there are different right times to buy for each one of us. In buying a house, factors such as budget, family needs, etc., can help us make the correct decision.
Coming to the need to buy a home, all of us have heard the saying “home sweet home’’, it is always great to have a place we can call our own to relax in, not only the economic factors but social as well!