What are the benefits of buying versus renting in the current market? There is a lot of information online about apartments being built. With interest rates on the rise, many people are wondering if buying still makes sense or if they should continue to rent.
Here are my top reasons that renting right now is probably not best for most people.
Avoid rent increases
The number one benefit of homeownership is that you’re not subject to the arbitrary price increases from a landlord. If you’ve rented, you know that at the end of the year you’re inevitably going to get a letter that says your rent’s going up 3%-5% for the next 12 months. And we all know what happens if you want to go month to month, or you want a shorter term extension, the rate goes even higher.
Owning your own home offers some stability. You don’t have to worry about a property being sold out from under you. Many private homes are for sale and the market’s increasing. Landlords, basically now reluctant landlords due to the recession, are choosing to either move back into their home or sell their home and reinvest the money where they’re currently living.
Another benefit of owning your home is that you don’t have to worry about pets. A lot of rentals will accept pets, but they only accept small pets. They want a pet deposit and some will require pet rent. In many cases they want you to do extra cleaning at the end of the lease such as bomb for fleas and pay additional cleaning charges.
Customize your living space
Owning means you can customize your house. In some cases, folks are renting and have older appliances. Out-dated appliances can mean higher utility bills. If you want to purchase a new stove you need your landlord’s approval. They may say yes, they may say no, but it’s really not going to be to your benefit to purchase a new appliance that’s going to go into a rental property.
Long term investment
When you own your own home the payments you make each month are a part of your long-term investment versus helping somebody else make their way to retirement. A recent article reported that millennials are going to take longer to be able to retire financially. One of the main reasons for that was that they are not buying houses. If you’re in that age group, that’s something you need to think about. Investing in real estate is one of the major ways people reach retirement comfortable.
If you have any questions about the current market in the Triangle Area, or you want to talk a little bit more about your specific situation of renting versus buying, please feel free to contact me. Thank you.