As a tenant, you’re continually confronted with a similar problem: continue to lease for one more year or buy a home? Your response relies upon your present circumstance and likely arrangements, yet there are various advantages to homeownership each tenant requirements to consider.
The following are a couple of things you should contemplate before you choose leasing for one more year.
1. Rents Are Rising Quickly
Lease increasing every year isn’t new. Thinking back at Census data affirms rental costs have gone up reliably for decades (see diagram underneath):
Assuming you’re a leaseholder, you’re confronted with payments that keep on climbing each year. Realtor.com recently shared the September Rental Report, and it shows cost increments speeding up from August to September (see diagram beneath):
As the graph shows, rents 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 when you do.
READ MORE: What To Consider When Making A Real Estate Move
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.
READ MORE: How to Set up a Workable Home Office (Check-Out)
Bottom Line
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, contact us today. We can help you make a confident, informed decision and be your trusted advisor along the way.