There are so many people who are currently interested in purchasing a home, but are concerned about the unstable state of the economy, which leaves them wondering, should they purchase a home now, or wait? You have probably heard by now that owning a home helps you increase your net worth, in addition to investing in a strong retirement plan to help boost your portfolio. If you are a potential homebuyer located in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and wondering if now is the right time to buy a home, Foundation Mortgage is here to help. Read on to learn how home ownership can help set you up for successfully investing in your future.

Buying a Home As a Long Term Investment

Purchasing your own home can be one of the most beneficial long term investments that you can make. Even though the real estate market ebbs and flows, residential real estate usually increases in value, which is known as appreciation. If you invest in a property, it is likely that your property value will not significantly increase immediately. However, if you stay in your home over a longer period of time, it is very likely that because of appreciation, or an increase in your home’s value, you will be able to sell the home later on for a significant profit, while also having a place to live throughout that time.

Boosting Your Home Equity

Home equity is essentially the portion of the home that you own compared to the amount that is still owed on your current mortgage. In addition to your home appreciating in value over time, as you pay down your mortgage, your home equity also increases because the payment is going more towards the principal balance of your loan than toward the interest. The longer you keep your home, the more home equity you will gain. As you reduce the amount you owe by paying down your mortgage, you are actually saving money as your home value increases, which will likely help you earn back the money you spent on your home purchase.

Advantages of Owning a Home

There are many advantages to owning a home. First of all, there are certain tax benefits that are available to homeowners. Also, you can have the freedom to make your home your own by painting, renovating, etc., unlike most renters. And of course, as you build up equity in your home, you will more than likely save money in the long run.

Investing In Your Future By Purchasing a Home

If you are interested in increasing your wealth by owning a home, you may want to make buying a home a priority. If you are interested in buying a home in Knoxville, Maryville, Lenoir City, Oak Ridge, or Gatlinburg, Tennessee, and want to learn more about your mortgage options, contact Foundation Mortgage today.