To rent or own, a question that every adult will consider at some point in their life. While renting requires less commitment, it will never build equity. In contrast, buying a house can be one of the best ways to start building equity and acquiring real wealth. Of course, the decision is a big one and should not be taken lightly.
For those renting, it might feel better not being tied to a 15- or 30-year mortgage because that comes much more responsibility. Also, renters typically aren’t responsible for maintenance or the replacement appliances since there is a landlord who is required to pay for those things. However, probably the biggest barrier to home ownership is the cost. While some adults aren’t at a point in their life to afford home ownership, others simply haven’t been educated on the process and aren’t aware of all the options available to them, especially for first-time home buyers.
Trepidation aside, there are many advantages to owning your own home. A mortgage can be lower than rent, especially for extended periods of time. For example, someone paying $1,800 a month in rent will pay $108,000 (not counting all the non-refundable deposits) in just five years! When you own, you build equity when your value appreciates. Homeowners typically enjoy attractive tax benefits such as writing off the interest. For many people making the leap from renting to owning, the most exciting part is having the freedom to renovate, decorate, and have whatever pets they want!
The current real estate climate presents challenges in supply and demand both in home buying and the rental market. But there is no reason to give up on the search. Follow your dreams and your budget and the right one will come along at some point.
If you would like any real estate advice on making the jump from renting to homeownership, reach out to the A Team at RE/MAX Ascend Realty at 480-490-9269 and our team will be glad to help educate you on the process and answer your questions.
By RE/MAX Ascend Realty - The A-Team