There are many reasons why people continue to rent. But the primary reason is most people believe they cannot afford to buy a home. The question they should be asking is… “Can I afford not to buy?”
In most cases owning a home is much better than renting. Before signing that rental renewal lease, take into consideration the benefits of owning a home over renting.
Financial Advantages
You might be able to afford more than you think. Often a mortgage payment is less expensive than a rental payment. Plus, you often get more for your money. Where you might be able to afford a small apartment, consider this… for the same amount in a mortgage you will have significantly more space. Rent is guaranteed to go up every year, sometimes significantly. A mortgage, on the other hand, might fluctuate slightly if you have an adjustable rate, but odds are it is going to stay in a similar range, plus or minus.
With rent you are making no long-term investment. You have the right to live there but you are not building investment toward your future. When you own your own home, it is considered a valuable investment and increases your net worth. The longer you own your home, the more equity you put into it. As real estate property appreciates, so will the worth of your home. When you are ready to sell in order to upgrade or move to a different area, you’ll likely make more on your investment.
How much longer do you want to continue paying your landlord’s mortgage?
The Department of Commerce reports that between 1995 and 2007, the average renter accumulated a little over $4,000 in net worth. The average homeowner accumulated $184,400. That translates into $180,000 more, or $1,500 per month. In other words, each month that the average person continues to rent, it costs them $1,500 in lost wealth accumulation. Furthermore, renters are subject to rent increases as well as higher tax rates because they cannot take a mortgage deduction.
Quality of Living
Have you ever thought the plain white walls of your rental space are a looking a bit boring? Good luck in trying to change it though. The landlord will generally not allow any type of significant changes to the property.
In your own home, however, you can customize it to your heart’s content. In fact, making improvements to the home actually increases its value so it’s beneficial to do so. There is a certain amount of pride that goes into home ownership.
Privacy and security are additional benefits in owning your own home. You, and whoever you designate are the only people allowed in your home. You can pull into the garage at your leisure, you can sit in your back yard without being disturbed by the neighbors, you are not required to let a third party into your home without your consent, you can have friends and family over, invite guests to stay and even have a roommate if you so desire all at your freedom.
Owning a home is a big step and a significant financial matter. However, when considering the advantages of owning as opposed to renting, it is really not a difficult decision as to which one is best. There are great financial and quality of living benefits to owning a home.
Many people assume that buying a home is out of financial reach for them. However, they may be able to afford more than they think and it would be beneficial to speak with a Realtor about the advantages of owning. Consider the option of owning before committing to another year of throwing money away on rent.
What Steps Should I Take Next?
First, discover how much you can afford for your new home. A qualified Realtor at Coldwell Banker Advantage can provide tools to help you determine your home affordability. You can get started with a simple tool such as a Mortgage Calculator.
Next, determine the area where you would like to live and begin your search with a Realtor’s assistance. Realtor services are a powerful tool for buyers. Your Realtor will have a knowledge of the market and what’s available to purchase. For this reason, it is beneficial to use an agent when searching for properties. They have tools and resources to locate your ideal home. Some properties you may never find without the help of a Realtor. Click here to get started with our powerful search tools online at ColdwellBankerWV.com
As a buyer, the services of a Realtor will cost you nothing.
We look forward to helping you on your journey from renter to home owner! Contact us today. The sooner we get started, the sooner you’ll be enjoying your new home and all the advantages that come with it.
