5 Reasons Why You Should Buy Any House You Can Afford

Many people are hesitant to buy a home in Houston these days, and it’s no surprise why. Home prices continue to appreciate due to increasing housing demand in the city, and interest rates on home loans are currently more than double what they were in recent years. 

As seasoned local Realtors® who work with potential home buyers every day in Houston, we understand that the thought of buying a house can be stressful, particularly in the current market. It’s a little scary out there! But trust us when we say that if you want to live in Houston, it’s time to buy any house you can afford. Otherwise, you run the risk of staying poor forever! 

That might sound alarmist, sure. But as challenging as it may seem to buy a home in Houston right now, it’s even MORE challenging to continue renting for years. According to a recent study by the Federal Reserve, the median net worth of U.S. homeowners is 40x higher than the median net worth of renters. The gap may be even larger in Houston. As Angel Fultz Realty, we’re here to guide you through the home-buying process with reassuring confidence. Taking the plunge to invest in any house you can afford now could be the game-changer for your financial future! Here’s why:

1. Interest Rates Will Not Return to Historic Lows

As potential homeowners in Houston, it’s critical to stay informed about the realities of the market, particularly when it comes to interest rates. In recent years, we’ve experienced historic lows in interest rates, which provided significant benefits for those purchasing homes. However, those rates have since risen significantly, and it’s crucial to understand that these historic lows may not return any time soon.

Economic experts agree that the low-interest environment we enjoyed in 2020 is not sustainable in the long run. Today, interest rates hover around seven percent, which is historically pretty average. As a result, those who decide to wait for the “perfect time” to buy a home are as likely to face higher interest rates than lower. They simply aren’t forecast to come down significantly any time soon—but if they somehow do, you can always refinance your mortgage at the new, lower rate!

2. Put More Money Into Savings Instead of Rent Increases

Every month, renters in Houston receive rent bills which only seem to go one way—up. These payments do little more than securing a roof for the month. When you purchase a home, on the other hand, your monthly payments contribute directly to your net worth by increasing your equity in the home. This is a form of saving, and it can often be more financially advantageous than putting money into a traditional savings account. By continuing to rent, you’re only increasing your landlord’s net worth, not your own!

3. Build Equity As Your House Appreciates

As homeowners in Houston, let’s not forget the value of equity build-up. Home equity is the amount of your home that you actually own. Specifically, equity is the difference between what your home is worth and what you owe your lender. As you make payments on your mortgage, you reduce your principal—the balance of your loan—and you build equity.

As you pay off your home loan, you are simultaneously building equity. But that’s not all—the appreciation of the Houston real estate market works in your favor along with your regular payments. As your home appreciates, your equity accelerates, and it becomes a kind of forced savings account that grows without you having to “save” extra money monthly.

4. Save Money at an Interest Rate That Keeps Up with Appreciation

One of the greatest advantages of home ownership is the ability to lock in your housing cost. With a fixed-rate mortgage, you can secure your monthly mortgage payment for the life of the loan. This shields your budget from the kind of rent increases you’re very likely to face as a tenant. In the last five years, Houston rents have gone up by about 30 percent or more. Good luck keeping pace with that kind of inflation for long! If you buy, you could put aside the money that would go towards a rent increase into a high yield savings account that will actually make you more money.

Furthermore, while the fixed rate is on your side, it creates an environment where your mortgage rate could well be below the rate of appreciation. This is a financial trifecta – you’re not just saving money, you’re also making money.

5. Avoid Compounding Rent Increases in the Future

Rent increases in the Houston area are not only an immediate problem, but pose a threat to your future financial stability. Due to inflation and increasing demand for rentals, rent prices are always at risk of rising as Houston continues growing—and it’s already one of the fastest-growing cities in North America. Owning your home means you’re not subject to these unpredictable changes.

Put simply, by buying a home, you’re investing in your future. Every payment is a step towards full ownership and financial stability. In contrast, increasing rents only promise uncertainty and difficulty in planning your financial future.

These are just a few of the reasons why waiting until you find the “perfect house” or the “perfect time to buy” in Houston is tantamount to choosing long-term poverty. Buying a home helps you BUILD your wealth, rather than give it away to a landlord. Whatever you can afford is what you should buy, and the sooner you take the plunge, the better off you’ll be. It’s the only way to make housing-market forces work FOR you, instead of against you. 

That might be hard to hear, but only the truth can set you free as a homeowner in Houston, Texas. You don’t have to start out with your forever home, but owning any property in Houston simply makes much, MUCH more financial sense than renting. 

If you’re ready to take the first steps toward home ownership in Houston, Angel Fultz Realty is ready and eager to guide you every step of the way. With expert advice and a commitment to helping our clients, we can help you navigate the seemingly daunting process of home ownership. Don’t hesitate to take the leap toward financial security. Contact us today!