For as long as we can remember, home ownership has been a big part of the American Dream. Most know that there are TONS of benefits to homeownership, yet a large number of Americans still choose to rent.
Recently, Realtor.com reported that:
“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option… as people get more savings in their pockets, buying becomes the better option.”
So is owning your home really better than renting? Here are our thoughts:
- Two main benefits of homeownership are:
- Your Monthly Housing Cost Stays the same
- When you finance your home at a fixed rate, you lock in your monthly housing cost for the next 5, 15, or 30 years. Interest rates have remained around 4% all year, marking some of the lowest rates in history. The value of your home will continue to rise with inflation, but your monthly costs will not.
- Buying a home is cheaper than renting.
- According to the latest report from Trulia, it is now 37.4% less expensive to buy a home of your own than to rent in the US. That number varies throughout the country but ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
- Studies show that a homeowner’s net worth is 44x greater than that of a renter.
- Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are included in the rent payment– along with a profit margin!
So basically, if you are going back and forth, considering whether to buy or rent, please think about the above and then call the Rutledge Property Group to begin your search!