Why You Should Buy a House: 3 Reasons to Start Your Austin, TX Home Search
ARE YOU PAYING A TON ON RENT?
DO YOU PLAN ON STICKING AROUND AUSTIN FOR A WHILE?
DO YOU HAVE A STABLE JOB?
If the answers are yes, then your decision is easy: you probably can and should buy. Now, determine your why. You should be putting your money into your own home, not into something you rent temporarily! If you live in Austin, you’re paying too much in rent each month and throwing away hard earned cash. But if you buy a home creatively with intent to house hack, odds are, your monthly mortgage payment will be less or about the same as what you pay in rent. With a stable job, loan approval will be easier to obtain, and that’s half the battle.
Before you start looking at houses, evaluate your personal and financial situation. Not everyone reading this may be ready to buy a property just yet. Everyone wants home ownership for different reasons. But no matter the reason, every person should eventually take the leap and buy a house. Here’s why…
Want to talk to us and see if you’re ready to buy your first home? Let’s hop on a call and chat! We can help you find a great lender and guide you through the steps of home buying.
1: Rent Sucks
Yes, shelter is one of your basic needs, but does that basic need have to eat away at 15-30% of your yearly earnings? You are throwing away money each month while leasing.
The average rent for a one bedroom in central Austin is about $1,799 a month or $21,588 a year (not even including all of the hidden fees that come with renting). You will never see this money again. Instead of throwing away $1,799 or more each month on rent, you could own a property with a $2,122 or less fixed monthly payment AND gain equity on your property + potentially house hack your living expenses WAY down (source: KXAN).
Equity is the amount of money you have put into your property and what you get back when you sell it. Remember, rent increases with inflation, but your mortgage payment is relatively fixed (note: property taxes may fluctuate).
2: Control
When you own the property that you live in, you call the shots.
This guarantees the absence of property managers and landlords; thus no more people telling you what you can and can’t do. Want to paint your walls? Do it. Want to plant a garden in the yard? Go for it! Want a trampoline in your yard? Why the hell not?! Most people want the freedom to do projects in their own house without somebody breathing down their neck.
3: Passive Income Through Rental Properties
Passive income is income received on a regular basis, with little effort required to maintain it. Passive income is a great retirement plan, especially when you don’t have a pension. Start saving now! Also, it is the key to a well-balanced life. The common denominator of successful people is making their money work for them. Want to have a career and family with time left for friends, traveling, and community involvement? Duh! Work less, make more money and have more time. Whether that be spending time with your family, getting involved in your community, or drinking a margarita at the beach on a Monday afternoon. Although your first home may not be an investment property, it will get you more familiar with the real estate world, and possibly one step closer in that direction.
Bottom Line: Don’t over complicate this.
If you are ready, willing, and able to buy a home, waiting will only hurt you in the long run.
We all fear the unknown, and no matter how much information you collect, you’ll never really know everything until you go out and experience it for yourself. If you’d like to discuss your options chat with us!
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