Why Buying a House Is a Smart Investment: Wise Words from Mark Wiseman

Interest rates are at historic lows, prompting more people to think about purchasing a home than ever before. While this may seem wild to consider (particularly in the midst of a global pandemic when the economy is so volatile!), in actuality, now's the perfect time to purchase a home for many people who can afford it. There's a sense of security that comes from homeownership, and beyond that, buying a home is actually a form of investing.

While most people don't necessarily think of purchasing a house as an investment so much as a way to provide themselves with a source of shelter and security, homes are very much a potential source of income over time. Especially when taken in the context of much of the wisdom Mark Wiseman espouses, buying a house could be one of the best alternative investments you can make in your lifetime. Read on to learn more about how homeownership fits in with Wiseman's overall investment advice and is a smart overall investment.

A home is a relatively-stable long-term investment vehicle.

One of Wiseman's key pieces of advice to all investors is to pick stable, consistent investment vehicles over flashier things like cryptocurrency. While it's certainly true that you can turn a quick fortune in cryptocurrencies by getting lucky, it's far smarter to think about your long-term investment goals and where you want to be 20 or 30 years from now.

To quote Wiseman in a piece on his investment wisdom in the midst of the coronavirus pandemic: "That is the time when everyone else capitulates and thinks the world will never come back, that’s the time you want to be the buyer because it will. Stick to your long-term course, and be the buyer when no one else is. If you retain your risk appetite you understand you can still take the risk."

The fact of the matter is that a home is something that will always have demand. As such, while interest rates are low, it's a great time to hop on the homeowner bandwagon and purchase a new home. Even if the market fluctuates, if you stick to your long-term goals of selling the home after it appreciates in ten to twenty years, you'll make out like a bandit. This is particularly true at a time where your purchase price plus interest will be significantly less than it would have been buying a new home even a year or two ago when interest rates were several percentage points higher.

It's easier than you think to get into homeownership.

When it comes to getting into your first home, many buyers wait because they're concerned that they can't afford the purchase price. It's understandable to worry about putting down the right amount towards a down payment and avoiding private mortgage insurance, or PMI; however, in the age of the coronavirus, the tables have turned a bit. For example, it's possible to put down less than 20 percent on a home, pay monthly PMI payments, and still wind up paying less than you would for a comparable rental in your area.

Taking those factors into account on top of the fact that lower mortgage rates will save you thousands of dollars over the lifetime of your loan, it's never been a better time to buy a home as an investment in yourself and your future. If you're worried that you don't have the ability to come up with a downpayment, it may be worth looking into lenders who specifically specialize in low deposit home loans.

You can even compare different loan options using an online comparison tool like iSelect to ensure that you find the best lender, value ratio, and lowest amount of mortgage insurance based on the total of your home's purchase price. This makes it easy to get a great deal and ultimately make a solid long-term investment.