It’s the age-old question: is it better to buy or rent?
Of course, both buying and renting have pros and cons. However, in today’s market, it may make more sense to buy a home rather than rent. If you are thinking about which option to choose, consider the following reasons why buying may be your best bet.
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Buying Can Break the Cycle of Rising Rents
There’s no way around it: over the last several decades, rents have steadily increased year over year. Consequently, you pay more each month, which means you have less to put into savings for a down payment. When your goal is to buy a home, you want to save as much as humanly possible beforehand so that your monthly mortgage payments are affordable. Rising rents often put those plans on hold.
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Homeownership is a Wealth-Building Tool
As a renter, you make monthly rent payments and that’s that. Your money is gone; that’s the end of the story. However, as a homeowner, you build equity with each monthly mortgage payment. As home values appreciate, your equity grows. Why is this important? Equity is one of the big reasons homeowners have an overall higher net worth than renters.
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Homeownership Helps Hedge Against Inflation
One thing we are all too aware of in today’s market is the astronomical rate of inflation. Inflation affects affordability in all aspects of life, especially in rental housing. With inflation currently so high, landlords may be even more likely to increase your rent than they were before. In fact, a recent study by Buildium indicates that 73% of property managers plan to raise their rents over the next two years. If you’re a homeowner with a fixed-rate mortgage, however, you are more protected against inflation because your monthly payments are locked in for 15 – 30 years.
In conclusion, in the current real estate market, there are several reasons it makes more sense to buy rather than rent. What many people don’t realize is that they also may not need to put down as much as they think to afford a home. To get preapproved for a loan and see what your buying power could be, contact Allycyn Bennett of Sandstone Financial at 949.717.7290. Then, connect with your local Surterre agent today at SurterreProperties.com.
