Four reasons why buying is still a better option than renting.
Does it make more sense to buy a home or to rent? It’s a great question because there are a lot of moving parts. In short, we think buying makes more sense than renting, even in this hot market. Let’s break down four reasons why:
1. Renting builds your landlord’s wealth, not yours. When you own a home, you’re paying down your own principal balance with each payment. When you pay rent, you’re building your landlord’s equity instead.
2. Owning a home fixes your monthly rate. Every time you renew your lease or move to a new property, your rent usually goes up. When you own a home, the payment is fixed for the next 15 to 30 years. Come inflation, market shifts, or life changes, that payment will stay the same.
“When you pay rent, you’re building your landlord’s equity instead of your own.”
3. Appreciation hurts renters but helps owners. When home prices increase, it’ll put a pinch on your finances if you’re renting. If you own a home, that appreciation pads your pocket instead.
4. Rising rents make down payments harder. It becomes harder to save for a down payment as rents rise. If you own a home, you have more equity and more money to pull from as prices go up.
If you have any questions or want us to connect you with a lender, give us a call. We’ll talk to you soon.
