Should You Rent or Buy Today?
Buying Might Make More Sense in Today’s Market
With the cost of renting hitting all-time high, many people are wondering if it makes more sense to buy or lease a home. The answer may not be as easy as before, because prices have gone up not just in terms of home prices but also rent over recent years.
If you are looking to buy a home in today’s market, it might be more affordable than renting. The housing market is so hot right now that prices have been climbing for both homes and rentals. According to Realtor.com, the median rent across the 50 largest US metropolitan areas reached $1,876 this June and has been rising for 16 straight months- hitting an all-time high! This means it may be time to start thinking about which type of property you want: rent or buy?
Homeownership also provides stability and a chance to grow your wealth. When you purchase a home, you lock in monthly payments that are fixed. This is crucially important in today’s economy, during a state of inflation. Prices are rising for everyday necessities like gas and groceries; however, it is likely that your highest monthly expense is housing. By locking in your housing payment with a fixed mortgage, you can experience greater long-term stability. This can help shield you from rising expenses in the future. Renting a home does not provide you with the same securities.
If you buy a house and secure an interest rate mortgage, no matter what happens with prices or rates in the future your monthly payment will stay fixed. This is something worth considering when faced with a rising cost of living and landlords may hike their rents!
The benefits of owning your home are numerous. As you pay off the mortgage, each payment goes towards building equity in what could become one huge asset for retirement or an emergency fund-whatever suit you best!
Homeownership is a great way to build wealth and it's not just an option for those who can afford the down payment. For many people home-buying provides them with their first taste of true financial freedom that comes from having equity in something they've worked hard on achieving.
Overall, if you are deciding if renting or buying is a better fit, let’s connect and explore your options. If you able to, with inflation and high rent rates, it may make sense to buy a home!