Buying Chicago real estate doesn’t just give you a place to live; it can also be a very smart financial move.
This is because owning a home can be like having a forced savings account, which you are committed to for the long term.
Consistent Saving On Autopilot
Sometimes saving money on our own each month is difficult. It takes a lot of discipline to maintain a consistent savings plan.
However, paying your mortgage every month means that you are paying down the principal and working toward eventually owning the property outright.
In the early years of the mortgage, the payments will go primarily to the interest on the loan.
But over time, the portion of your payment dedicated to principle increases, which accelerates paying off the entire mortgage.
Make Yourself Wealthy Instead Of Your Landlord
In the long term, owning your own home may be a much better financial arrangement than renting a home. No matter how long you pay monthly rent, you will never own the real estate that you are living in.
When you are renting your home, it may also be possible for your landlord to increase your rent every year.
On the other hand, paying a mortgage on your real estate means that every month you get closer to owning the home.
In fact, most home mortgage lenders offer a fixed interest rate mortgage. This gives you a sense of control over how much you are paying every month, year to year.
In a fixed rate mortgage, every mortgage payment pays down a portion of the principle on your mortgage loan. In many cases this builds equity in your property and increases your net worth.
It’s a good idea to check with a professional mortgage lender to get an idea of the most up-to-date programs available.
Real Estate May Increase In Value Over Time
Over the years, your home might appreciate in value. Many experts say that the average home value increase each year over longer stretches of time, although this will vary according to the area you live in, the current economy and other factors.
Your home’s value may very well fluctuate throughout the years, but history has shown that over the long term, buying a home can be a very beneficial financial decision.
Understanding the benefits of home ownership, including the potential financial upside of purchasing your own home, can be an excellent way to further your overall personal financial plan.