Why Rent If You Can Buy
Do you often think “Why rent if you can buy”. Home ownership rates are the lowest they have been in the last 50 years. A large portion of Americans are still renting properties instead of enjoying a home of their own. Consumer reports believe this is an issue because of a buyer’s lack of trust in their ability to purchase. It is still a long standing notion that a buyer needs 20% towards the cost of the home in order to move forward but this isn’t true. There are countless programs including down payment assistance programs as well as closing cost roll-ins. A home owner could move in with as little as a few thousand dollars. This makes a huge difference in the time it takes to save up to make the move
Home ownership is a great investment
Home ownership in today’s market is a great investment since the interest rates are at an all time low. The money saved over a mortgage’s lifespan can result in tens of thousands of dollars if not hundreds of thousands. As a result of low interest rates your monthly mortgage payments are significantly lower cost. The housing marketing is heated and rental prices are soaring . Statistics support that home ownership can be equivalent to your rental rate each month or less. The question you need to ask yourself is “Why get stuck in a small 2 bedroom apartment if you can move into a 3 bedroom house with a great backyard and pay a monthly rate that is the same”?
Why pay towards someone else’s financial goals
There is also the fear that a home can keep you “stuck” or “rooted” to one place without an easy transition out if you decide to move. Understand the equity build up when it comes time to sell is going to be far more beneficial than if you put money into a rental and decided to move. The money from selling the property can be used to purchase a new home. Renting on the other hand has no additional funds to transition into a new place. Think about how much house you can afford for the amount of rent you pay every single month. You are certainly putting a roof over your head but your financial status will stay status quo. Discuss with your agent and lender the steps you need to take towards home ownership.