As a renter, in today's market your faced with a dilemma: keep renting for another year or purchase a home? Your answer will depend on your current situation and future plans, but there are a number of benefits to homeownership everyone should consider. Here are a few things to muse about before you settle on renting for another year.
1. Rents Are Rising Quickly Nationwide
Rent increasing each year isn’t new. Looking back at Census data confirms rental prices have gone up consistently for decades. If you’re a renter, you’re faced with payments that can climb each year. Realtor.com recently shared the September Rental Report, and it shows price increases accelerating from August to September and are still on the rise. It’s important to keep this in mind when the time comes for you to sign a new lease, as your monthly rental payment may increase substantially.
2. Renters Miss Out on Equity Gains
One of the most significant advantages of buying a home is the wealth you build through equity. This year alone, homeowners gained a substantial amount of equity, which, in turn, grew their net worth. As a renter, you miss out on this wealth-building tool that can be used to fund your retirement, buy a bigger home, downsize, or even achieve personal goals like paying for an education or starting a new business.
3. Homeowners Can Customize to Their Heart’s Content
This is a big decision-making point if you want to be able to paint, renovate, and make home upgrades. In many cases, your property owner determines these selections and prefers you don’t alter them as a renter. As a homeowner, you have the freedom to decorate and personalize your home to truly make it your own.
4. Owning a Home May Provide Greater Mobility than You Think
You may choose to rent because you feel it provides greater flexibility if you need to move for any reason. While it’s true that selling a home may take more time than finding a new rental, it’s important to note how quickly houses are selling in today’s market. According to the National Association of Realtors (NAR), the average home is only on the market for 17 days. That means you may have more flexibility than you think if you need to relocate as a homeowner.
Deciding if it’s the right time for you to buy is a personal decision, and the timing is different for everyone. However, if you’d like to learn more about the benefits of homeownership, let’s connect so you can make a confident, informed decision and have a trusted advisor along the way.