The Benefits of Owning vs. Renting Your Home
Are you ready to tell your landlord where he can stick his rent increase? Does the thought of waiting another six weeks to get something repaired make you want to scream? If renting your current home makes you miserable, it may be time to look at other options.
Buying a home, regardless of the dips and turns in the local real estate market, is still the best long-term way to build a strong financial future. Sure, you could invest in the stock market or Bitcoin, but over the long-term, a home will give you much more than a financial return. It becomes a place that makes you happy because it’s yours.
Need more convincing? Here are a few other tangible benefits of buying a home instead of renting it.
You Can Have a Pet
When you own a home, you can have as many pets you want. You don’t have to pay an extra pet deposit or tack on an added fee to your monthly rent. You’re not limited to a single size or type of pet. Want iguanas, bunnies, cats, and dogs? You can have them all because you’re the homeowner, and you get to decide.
There is one exception to this rule. If you live in a condo with a homeowner’s or condo association, they may set limits on the types of pets (if any) you’re allowed to have. All this means is that you may need to exclude these types of properties from your home search during the buying process.
You’ve Got Freedom
Have you ever lost a deposit because you painted the walls in a rental? Did your landlord tell you what kind of color you could use? Once you become a homeowner, that’s not a problem anymore. If you want a chartreuse bedroom with lavender polka dots, you can have it. Although, when you’re ready to sell, any good real estate professional will tell you to paint over it.
Owning your home means you can do literally anything that doesn’t damage the structure or integrity. Want to make the bathroom bigger? You can hire a contractor! Wish you had a pool? You can put one in! Do you think the pool is a waste of time? You can have it taken out. Whatever you want to change about your home, you can.
No More Waiting
Let’s be real here. When you’re a homeowner, you’re responsible for everything. From the leaky roof to the hot water heater that’s on its last legs. Owning a home comes with expenses and responsibility. Having a savings account just to help pay for the unexpected is a good idea. But there’s another side to this….
You don’t have to wait for a landlord to fix something. No more calling, waiting for a call back, watching your landlord put a bandage on a major problem, only to call back when it breaks again. When something needs fixing, you can do it on your schedule. If you’ve ever waited weeks to have a leak fixed or for the air conditioning to blow cold air or had to call about the same problem multiple times, you’ll know how nice “not waiting” can be.
Get Better With Your Money
Owning a home doesn’t automatically make you better with creating a budget or saving money. Homeownership is great, but it’s not magic. But it does help you get better with your money in two ways: stable payments and an automatic savings plan.
How many times did a landlord raise your rent until it was too ridiculous to keep paying? With a fixed rate mortgage, the monthly payment never goes up. The escrow - taxes, insurance, and mortgage insurance (if applicable) - may fluctuate but not your house payment. At the same time, the longer you stay in a home and pay your mortgage, the more equity you build. When you’re ready to sell, you may have a nice tidy profit to pocket or use towards a bigger home.
Better and Sometimes Lower Monthly Payments
After speaking with a wonderful Naples lender, Lauren Maxwell, I’ve got numbers that might surprise you. In her experience as a mortgage lender, the average rent new buyers currently pay is around $1,300 to $1,400 per month. Some pay more, some pay less. If you buy a home for $250,000, your mortgage, including escrow, will come to approximately $1,600 a month.
The mortgage for a home that price is slightly more, assuming you fall in the average rent price. But it may be less, depending on where you rent. And $250,000 is a lot more house than you might imagine. Even better, you’re building equity and the interest you pay is tax deductible at the end of the year.
Look, buying a home isn’t for everyone. If you’re dealing with bad credit or not making a lot of money, renting may be your best option right now. But if your credit is good, you’ve got some savings, and you’re ready to get away from landlords, buying may be the best decision you ever make. Depending on the home you buy, you may pay less than your current rent or you may pay a little more, but think of everything you get in return.
Are you ready to switch from being renter to a homeowner? Let’s talk.