Deciding between buying or renting your next home? It’s true that home values have gone up quite a bit, but so have rents.
In fact, the largest landlord in the US, Invitation Homes, said that rents have gone up 14% since last year. And that’s not all—they forecast that rents will continue to go up about 6% annually.
So, while it’s true that initially purchasing a home will be more expensive, your mortgage payment will remain relatively stable in the future. However, your rental payments will likely rise significantly in the years to come.
Buying a Home May Make More Financial Sense Than Renting One
When you rent, you face rising housing costs, won’t see a return on your investment, and limit your ability to save. It’s not just home prices that have risen in recent years – rental prices have skyrocketed as well and there are a few key differences that could make buying a home a more worthwhile option for you.
If You Need More Space, Buying a Home May Be More Affordable
When you buy, you lock in your monthly payment with your fixed-rate mortgage, stabilize your housing costs, own a tangible asset, and grow your net worth as you gain equity. As a recent article from CNET explains:
“…if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month. That’s an advantage over renting since there’s a good chance your landlord will raise your rent to counter inflationary pressures.”
If you’re trying to decide whether to keep renting or buy a home, or want to learn more about the benefits of homeownership, let’s connect! We can give you a complete analysis with statistics for your specific zip code so you can make accurate comparisons and see which choice is best for you. Give us a call at 714.251.3612 or email at [email protected]
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