Buying a home in Carson Valley, Carson City or Lake Tahoe, or anywhere in America, has become more expensive with rising interest rates. Everyone knows it, and headlines love to pile on some stress with this reminder. However, there's some great news: the affordability of your new home for sale in Carson Valley really does not depend on interest rates.
It is far more important to look at the financial factors you can control than to wait to buy a home when the conditions seem "perfect." Many buyers are disheartened to see 3% interest rates become a thing of the past, but this does not mean your chance to own a home in Carson Valley has passed. To learn more about finding a home for sale in Carson Valley that will meet your needs, contact us any time.
To understand what makes your home truly affordable, consider these factors.
You Determine What's Affordable
Many hopeful homeowners are waiting for interest rates to reach a certain number before being comfortable buying. There are a few problems with looking to interest rates to tell you that buying a home is affordable:
- Lower interest rates in the future will not guarantee a lower monthly payment, because they will like drive up property values.
- If you can afford the monthly payment, then your home is affordable no matter the interest rate.
- You can always refinance if rates dip again, without being subject to increased prices.
- Owning a home provides many financial opportunity and generational wealth building benefits that are well worth a higher monthly payment.
The Value of Owning a Home
The value of owning a home goes beyond financial benefit alone. This is why even if it costs more than you had hoped, it can be worth it. While paying more than you can reasonably afford for a home is never advisable, there are plenty of reasons you might consider upping your housing budget for a time to enjoy some of the other benefits of homeownership, like:
- Not having to move until you decide to
- Flexibility to renovate and relocate according to your preference
- Building stability and familiarity for your kids
- Getting to know neighbors more long term and building a community
Future Options
When you choose to own instead of rent, you have a measure of control over your future that you would not as a tenant. You will not be at the mercy of a landlord, who can choose to increase your housing cost or kick you out any time your lease is up. Owning a home puts you in charge of your future, allowing you to determine what is best for your household.
Offset the Impact of Inflation
Inflation is beyond any of our control, but it affects us personally and practically every day. One of the best ways to offset the impact of inflation in your life is to own a home. Here's why:
When you buy a home, the monthly cost of it stays virtually the same. Sure, your property taxes and utilities may rise, but your principal and interest payment will stay steady for the life of your loan.
This means that as your rental property becomes increasingly more expensive with rising rent prices in the next ten years, your home will feel increasingly more affordable. The price of owning a home remains about the same as other prices rise all around it.
In addition, inflation will begin to benefit you as a homeowner because it will be reflected in your home's value. While you may think this doesn't matter unless you plan to sell, increased equity in your home can also benefit you if you decide to refinance or take out a home equity loan to fund another investment.
If you want to learn more about making an investment in a new home in Carson Valley, we are here to help. Contact us any time with your questions or to learn more about a home that might be right for you.