Owning Is Often More Affordable Than Renting
As the Saying Goes: “It’s Time To Stop Paying Someone Else’s Mortgage!”
According to the latest report from ATTOM Data, owning a home is more affordable than renting in the majority of the country. In the latest Single-Family Rent Index from CoreLogic, single-family rent saw the fastest year-over-year growth in over 16 years.
Molly Boesel, Principal Economist at CoreLogic, stresses the importance of what the data shows: “Single-family rent growth hit its sixth consecutive record high. Annual rent growth was more than three times that of a year earlier. Rent growth should continue to be robust in the near term, especially as the labor market continues to improve.”
What Does This Mean for You?
While it’s true homes keep increasing in value, rents are skyrocketing. The big difference is, when you rent, that rising cost benefits your landlord’s investment strategy, but it doesn’t deliver a return for you.
In contrast, when you buy a home, your monthly mortgage payment serves as a form of forced savings. Over time, as you pay down your loan and as home values rise, you’re building equity (and by extension, your own net worth). Not to mention, you’ll lock in your mortgage payment for the duration of your loan (typically 15 to 30 years) and give yourself a stable and reliable monthly payment.
If you’re weighing your options between renting and buying, it’s important to look at the big picture. As we outlined in a recent blog, there are additional reasons why waiting can cost much more in the long run.
How Do I Get Started?
While buying a home can feel like a daunting process, having a trusted advisor on your side is key. Our agents are ready to help you navigate the process of becoming a homebuyer. They will be by your side, from getting prequalified, determining how much home you can buy and how much you really need for a down payment, and, of course, finding the perfect home, all the way to submitting a winning offer.
Looking to invest in a rental property? We can guide you through this process as well.
Start the conversation today.