Today’s mortgage rates give renters a great reason to buy a home of their own. While everyone’s timeline is different, depending on your current situation and future plans, it may be your time to own a home of your own and stretch your dollar a bit further.
Here’s a few reasons why it may be beneficial for renters to look into buying:
- Rent will continue to increase. A popular reason why renters choose to move is because each year you rent, you will likely see a rent increase. When buying a home, you’ll lock in your monthly payment for the life of the loan which gives you consistency and predictability in your payments.
- Freedom to customize. When you own your own home, you have the freedom to make it your space by painting, renovating, making home upgrades, etc. In many cases, landlords determine how rentals look and prefer that you don’t change things as a renter.
- Flexibility for relocation. While it may be easier to quickly change your living situations while renting, with today’s all time low inventory in the housing market you may not have to worry about your house sitting on the market for a long period of time.
- Privacy. When renting, landlords can access your space in the case of an emergency. However as a homeowner, you decide who can come inside, which is so important now more than ever with the current pandemic.
- Building Equity. When paying rent, the money goes directly to your landlord and they earn any equity towards property gains. However, when making mortgage payments on your own home, the benefits of your investment go directly towards your net worth.
Information sourced from: Keeping Current Matters- Rent vs. Buy: How to Decide What’s Best for You