The Perks of Buying over Renting

<article class="post-1029512 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1029512"><span class="entry-date">May 1, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">The Perks of Buying over Renting</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=The+Perks+of+Buying+over+Renting&amp;url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Fthe-perks-of-buying-over-renting%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="The Perks of Buying over Renting Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240501-The-Perks-of-Buying-over-Renting.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>Thinking about buying a home? While today’s <a href="https://www.simplifyingthemarket.com/2024/03/26/whats-the-latest-with-mortgage-rates/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> might seem a bit intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get <a href="https://www.simplifyingthemarket.com/2024/04/15/ways-to-use-your-tax-refund-if-you-want-to-buy-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">your own place</a>.</p>
<h4><strong>1. Home Values Typically Go Up Over Time</strong></h4>
<p>There’s been some confusion over the past year or so about which way <a href="https://www.simplifyingthemarket.com/2024/04/22/what-you-really-need-to-know-about-home-prices-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> are headed. Make no mistake, nationally they’re still going up. In fact, over the long-term, <a href="https://www.simplifyingthemarket.com/2024/03/13/your-home-is-a-powerful-investment/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> almost always go up (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240429/20240501-Price-Appreciation-over-the-last-60-years.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240429/20240501-Price-Appreciation-over-the-last-60-years.png"/></a></p>
<p></p>
<p>Using <a href="https://fred.stlouisfed.org/series/ASPUS" rel="noopener noreferrer" target="_blank">data</a> from the <em>Federal Reserve</em> (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising.</p>
<p>This is a big reason why <a href="https://www.simplifyingthemarket.com/2024/03/18/4-tips-to-make-your-strongest-offer-on-a-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">buying a home</a> can be better than <a href="https://www.simplifyingthemarket.com/2024/04/17/is-it-better-to-rent-than-buy-a-home-right-now-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">renting</a>. As prices go up and you pay down your mortgage, you build <a href="https://www.simplifyingthemarket.com/2024/03/20/does-it-make-sense-to-buy-a-home-right-now/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">equity</a>. Over time, this growing equity can really increase your net worth. The <em>Urban Institute</em> <a href="https://www.urban.org/projects/wealth-opportunities-realized-through-homeownership-worth-project" rel="noopener noreferrer" target="_blank">says</a>:</p>
<blockquote><p><em>“Homeownership is critical for wealth building and financial stability.”</em></p></blockquote>
<h4><strong>2. Rent Keeps Rising in the Long Run</strong></h4>
<p>Here’s another reason you may want to think about buying a home instead of renting – rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to <a href="https://ipropertymanagement.com/research/average-rent-by-year" rel="noopener noreferrer" target="_blank">data</a> from <em>iProperty Management</em>, rent has been going up pretty consistently for the last 60 years, too (<em>see graph below</em>):</p>
<p><a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240429/20240501-Increase-in-Rents-over-the-last-60-years.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240429/20240501-Increase-in-Rents-over-the-last-60-years.png"/></a></p>
<p></p>
<p>So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.</p>
<p><strong>Your housing payments are like an investment, and you’ve got a decision to make. Do you want to invest in yourself or keep paying your landlord?</strong></p>
<p>When you own your home, you’re investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.</p>
<p>As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the <em>National Association of Realtors</em> (NAR), says:</p>
<blockquote><p><em>“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”</em></p></blockquote>
<h3>Bottom Line</h3>
<p><span style="color: black;">If you’re tired of your rent going up and want to explore the many benefits of homeownership, talk to a local </span><a href="https://www.simplifyingthemarket.com/2024/04/09/the-top-5-reasons-you-need-a-real-estate-agent-when-buying-a-home/" rel="noopener noreferrer" target="_blank">real estate agent</a><span style="color: black;"> to explore </span><a href="https://www.simplifyingthemarket.com/2024/04/11/builders-are-building-smaller-homes/" rel="noopener noreferrer" target="_blank">your options</a><span style="color: black;">.</span></p>
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