Why Purchasing a Home Makes More Financial Sense Than Renting

Home prices may leave you feeling as though renting is your only option as prices continue to rise as they have been over the recent years. But the price increases have even been affecting the rental market as those who were considering buying, may just continue renting instead. These rising prices for both home buying and renting have probably left a damper on your housing plans either way but we’ve highlighted a couple important reasons why buying may still be the better option.

Space is More Affordable in a Home

Based on the latest data from realtor.com and the National Association of Realtors (NAR), it may actually be more affordable to buy than rent depending on the number of bedrooms you need. If you need two or more bedrooms, it may actually be more affordable to buy a home even as prices rise. With the average monthly mortgage rate being slightly below the overall national average and the average rate for a two bedroom. And this doesn’t even take into consideration the financial benefits of home ownership but it at least helps us see how it can be more affordable when compared to national averages.

Provides Financial Stability

When purchasing a home, you can lock in your monthly rate with a fixed rate home mortgage. This can be helpful in an economy facing inflation because now, your biggest expense, your mortgage payment, is secured and this will protect you from rising expenses that tend to occur with renting. So no matter how much prices and rates may go up, your monthly payment will always remain the same.

Builds Equity

If and when you’re able to buy, it will help improve your net worth. As you pay down your home loan over time and as home values continue to appreciate, so does your equity. That equity can then be used to move into a future home when you’re ready to take that step. Home ownership will almost always be considered the most reliable way to build wealth. When you’re renting, you’re investing in someone else’s financial future and building their wealth.

By working with a trusted Realtor, it will be easier to navigate the different real estate markets with confidence. They can help inform you of the different factors to consider when making the big decision to buy or rent.