Are you wondering if it makes sense to Boston midtown high rise condo right now? While today’s mortgage rates might seem a bit intimidating, here are two compelling reasons why it still may be a good time to become a downtown Boston condo owner.
Boston Midtown High Rise Condos Values Appreciate over Time
There’s been a lot of confusion around what’s happened with home prices over the past two years. While they did dip ever so slightly in late 2022, this year they’ve been appreciating at a more normal pace, which is good news for the housing market. And while looking at price movement over just a year or two can make you worry prices are usually this unpredictable, history shows in the long run, home values rise (see graph below):
Using data from the Federal Reserve for the past 60 years, you can see the overall trend is home prices have climbed quite steadily. Sure, there was an exception around the housing crash of 2008 that caused prices to break the usual trend for a time, but overall, home values have been consistently on the rise.
Increasing home values is one great reason why buying may make more sense than renting. As prices rise, and as you pay down your mortgage, you build equity. Over time, that growing equity gives your net worth a boost.
Boston Apartment Rent Keeps Going Up Through the Years
Another reason you may want to consider buying a home instead of renting is the never-ending rent hike. If you’ve ever felt the pinch of rent increasing year after year, you’re not alone. That’s because, rents have climbed steadily over the past six decades (see graph below):
By buying a home, you can lock in your monthly housing costs and bid farewell to those pesky rent hikes. That stability is a game-changer.
In the end, it all boils down to this: your housing payments are an investment, and you’ve got a choice to make. Do you want to invest in yourself or your landlord?
By becoming a homeowner, you’re investing in your own future. When you rent, that’s money you never get back.
When you factor in home values consistently rising, plus the opportunity to get relief from never-ending rent hikes, homeownership can be a path to financial security. As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), states:
“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”
When it comes down to it, buying a home offers more benefits than renting, even when mortgage rates are high. If you want to avoid increasing rents and take advantage of long-term home price appreciation, let’s connect to go over your options.
All of us invest in something. Technically, investing means expanding your money, time, and effort on something with an expectation of a profit, return, or benefit. It depends on what kind of benefit you would like to receive.
For instance, you may invest in your children’s lives because you gain something beneficial from it, like tender or happy emotions. You may also invest in your signature cars because you can still sell them at a reasonable price come the time that you no longer find them attractive.
The same is true in investing in downtown Boston real estate. Real estate is defined as property consisting of lands or buildings and anything attached or affixed thereto permanently. You can invest in them through buying and selling, building and selling, or just leasing it. The best news is that real estate is one of the investment subjects that never depreciates. It only appreciates as time passes by.
However, before investing in downtown Boston real estate, you must be aware of some important matters that might affect you in the future. You need all the knowledge before diving into real estate investing.
You must determine your cash flow before looking into real estate because it is a long-term investment. It’s not like buying something from the store and getting the purchased goods right away. It’s like answering the question, “how stable is your income?” since your income dictates your capacity to purchase real property.
Indeed, you cannot wish to buy a million-dollar real property if you only earn 500 dollars per month from a single income stream. You need to match up your income with your prospective property’s purchase price. Also, equally important to note is that even if you earn a lot per month, you must still consider the likelihood of acquiring the same amount over the next several years. You cannot merely make speculations about your income.
What are your goals for the downtown Boston building purchase? What is your purpose for buying it? These questions will help you prepare for making a wise decision. Some intend the real estate for residential use. Others plan it for commercial use when they want to rent it out or improve it to sell later on. Thus, knowing the purpose will help you calculate risks, especially the amount of money you will probably spend on it.
Thus, if the real estate is meant for commercial use, you also have to assess and compute in advance the profits you will possibly earn so that your money won’t be put to waste.
Downtown Boston Real Estate and the Bottom Line
Real estate investment may be tedious, but everything will fall into place once you consider all the factors affecting it. Further, this type of investment is one of the best rewards you could give yourself. So don’t be afraid to go for it so long as all adverse risks have already been ruled out.