Why Buying a Home Makes More Sense Than Renting Today
Are you trying to decide if it would be better for you to continue renting or invest in a property this year? If this is the case, think about it. Rents that are affordable continue to be a problem, as they have been for many years. This is due to the fact that, historically speaking, rents have a tendency to increase with time. According to the data collected by the Census, rents have been on an upward trend from the year 1988.
In addition, information from the most recent rental report published by Realtor.com shows that rents are still increasing even if the rate of increase is lower than what was seen during the epidemic's peak. Because rents are much higher today than they were in years that were more typical, prior to the pandemic, purchasing a property may be a more financially advantageous choice, particularly if the long-term pattern of annual rent increases continues. Homeowners who have a mortgage with a fixed rate, on the other hand, are able to lock in a certain monthly payment amount for the length of their loan, which is normally between 15 and 30 years.
Owning your own house not only protects you from ever-increasing rents and makes it easier and more economical to expand your living space, but it also enables you to begin accumulating equity in your property, which in turn increases your overall net worth.
Additionally, property prices tend to go up over time, and as you pay down your mortgage, you will accumulate equity in your home. Because you may utilize that equity to help fuel a move to a place that is even larger in the future, it can help set you up for success in the future and set you up for future success. According to Zonda's research, this is precisely why the majority of millennials who purchased a property in the previous year did so in order to grow their own equity rather than contributing to that of another person.
Please direct message me if you are trying to determine if it would be better for you to purchase a house or continue renting one so that we may discuss your alternatives. As rents continue to increase, it could make more financial sense for you to pursue your ambition of becoming a homeowner.