4 Things Every Renter Needs To Consider
As a renter, you're always faced with the same decision: should you renew your lease or buy a home? Your answer will vary depending on your current situation and future aspirations, but there are certain advantages to buying that every renter should consider.
Here are a few things to consider before committing to another year of renting.
1. Rents are rapidly increasing.
Rent increases every year is nothing new. Rent prices have been steadily rising for decades, according to Census data (see graph below):
If you're a tenant, your payments will continue to rise year after year. The September Rental Report, published by Realtor.com, shows that price rises accelerated from August to September (see graph below):
Rents are still rising, as the graph illustrates. It's vital to keep this in mind when it's time to sign a new lease because your monthly rental cost will likely climb significantly.
2. Renters miss out on gains in equity.
The money you acquire via equity is one of the most significant advantages of purchasing a home. Homeowners earned a significant amount of equity this year alone, increasing their net worth. Renters miss out on this wealth-building opportunity, which may be utilized to support retirement, purchase a larger home, downsize, or even achieve personal ambitions such as paying for college or starting a new business.
3. Homeowners can personalize their spaces to their hearts' content.
This is a critical decision-making point if you want to be able to paint, renovate, and make house modifications. In many circumstances, your landlord makes these decisions and prefers that you don't change them as a renter. You have the opportunity to decorate and personalize your home as a homeowner to truly make it your own.
4. Owning a home may provide you with more freedom than you think.
You may decide to rent because you believe it would give you more flexibility if you need to relocate for any reason. While it's true that selling a home takes longer than finding a new renter, it's also worth noting how swiftly homes are selling in today's market.
The average home is only on the market for 17 days, according to the National Association of Realtors (NAR). As a result, if you need to relocate as a homeowner, you may have more options than you think.
Choosing whether or not now is the perfect moment to buy is a personal decision, and everyone's timing is different. If you'd like to learn more about the advantages of homeownership, let's connect so you can make an informed decision with the help of a trustworthy advisor.