Why does someone choose to rent over buying a home? Is it the fact that it’s cheaper than buying a house, the flexibility it offers, or because they aren’t directly responsible for the property? In reality, making the decision to buy a home has many benefits that outshine renting. If you’re financially stable and expect to live where you’re at for at least two years, it’s time to advance to homeownership and reap all the physical and financial benefits that come with it.
Rent Can Increase at Any Moment
Rent continuously rises when leasing a property, and the housing market is skyrocketing now that people are back to their new “norm” following the ongoing pandemic. As a renter, you are aware that your rent could either increase or you may be forced to find a different property with a monthly rent within your budget. When moving to a new property there are additional moving costs that can set renters back financially in the long term as well.
If you own a home, you can rest assured that your mortgage payments will remain pretty consistent, meaning no major surprises should come your way. The only real fluctuation you may see is with property tax changes from year to year but even those are more predictable than a landlord who has the liberty to increase pricing or sell at their leisure.
You Want to Improve Your Credit
Although renting may seem like it’s less of a cost upfront, throughout time you’re going to pay more for less space. When you decide to buy a home, you often will find somewhere with more space while also building equity through paying a mortgage. Signing a mortgage gives you the opportunity to build your credit, earn tax benefits and grow equity all at the same time.
There are many family dynamics that may change you’re living situation. Whether you’re starting a family and need to upsize or you’re now an empty nester and needing to downsize, buying allows you to better tailor your home to meet your unique needs. Buying a property gives you the freedom to decide what size and location work best for your family. If you have children, buying a house in an amazing school district is likely ideal. If you’re a young couple though, you may care more about proximity to places where you can work and play, like the beach.
You’re Tired of Investing With No Benefits
If you are nervous about how you will be able to afford a property, keep in mind that when you rent you are paying almost the same amount of money but it’s going towards paying off someone else’s mortgage instead of your own. When purchasing your own property, you will be financially responsible for all damages, renovations, and improvements. Although this sounds like a disadvantage, it ultimately means you can invest in making your living exactly what you want. Owning means you have the freedom to paint the walls whatever color you want, add a swimming pool, knock down the wall separating your kitchen and living area to create an open floor plan or whatever else it is you dream of. Everything you’ve envisioned for your home becomes possible when you own verse rent. The possibilities when you’re a homeowner are endless and you can be confident that the money being spent is going towards things that matter to you or your family!
Extra Factors to Consider
When making the decision to stop renting here are some extra things to consider:
- Is my credit score attractive and competitive?
- Do I have enough money saved up to cover the down payment and closing costs?
- Do I plan to be in this area for at least two years?
As long as the answer to most of these questions is yes, homeownership is definitely something you should consider. Spend your money smarter and invest in a home today! Our team at Marsh Landing Realty are experts in real estate and ready to help you find a property that fits your needs. Contact us to get started!