The Perks of Buying over Renting

The Perks of Buying over Renting




Thinking about buying a home? While today’s mortgage rates might seem a bit intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get your own place.

1. Home Values Typically Go Up Over Time

There’s been some confusion over the past year or so about which way home prices are headed. Make no mistake, nationally they’re still going up. In fact, over the long-term, home prices almost always go up (see graph below):

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Using data from the Federal Reserve (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn't follow the normal pattern, but generally, home values kept rising.

This is a big reason why buying a home can be better than renting. As prices go up and you pay down your mortgage, you build equity. Over time, this growing equity can really increase your net worth. The Urban Institute says:

“Homeownership is critical for wealth building and financial stability.”

2. Rent Keeps Rising in the Long Run

Here’s another reason you may want to think about buying a home instead of renting – rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):

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So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.

Your housing payments are like an investment, and you've got a decision to make. Do you want to invest in yourself or keep paying your landlord?

When you own your home, you're investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.

As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says:

“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

If you're tired of your rent going up and want to explore the many benefits of homeownership, let’s talk to explore your options.

86 Properties
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$785,000
Neighborhood: Port Charlotte Sec 093
3
Beds
2
Baths
1,857
Sq.Ft.
2002
Year Built
1
Day on Site
C7492807
MLS
$800,000
Neighborhood: Punta Gorda Isles Sec 23
3
Beds
2F11/2
Baths
2,567
Sq.Ft.
2019
Year Built
3
Days on Site
C7492744
MLS
Open 5/19
2100 Timucua Trl Nokomis,  FL 34275
$727,500
Neighborhood: Calusa Lakes
3
Beds
2
Baths
2,024
Sq.Ft.
1994
Year Built
4
Days on Site
N6132943
MLS
$659,000
Neighborhood: Punta Gorda Isles Sec 23
3
Beds
2
Baths
2,054
Sq.Ft.
2023
Year Built
5
Days on Site
C7492665
MLS
$575,000
Neighborhood: Venetian Golf & Riv Club Ph 7
3
Beds
2
Baths
2,044
Sq.Ft.
2013
Year Built
5
Days on Site
N6132942
MLS
Open 5/26
8889 Enclave Ct Sarasota,  FL 34238
$1,200,000
Neighborhood: Enclave At Silver Oak
3
Beds
2F11/2
Baths
3,080
Sq.Ft.
2004
Year Built
5
Days on Site
N6132945
MLS
$1,895,000
Neighborhood: Siesta Estates
6
Beds
5F11/2
Baths
3,924
Sq.Ft.
2000
Year Built
6
Days on Site
C7489324
MLS
$599,990
Neighborhood: Kings Xing
3
Beds
2F11/2
Baths
2,359
Sq.Ft.
2002
Year Built
7
Days on Site
C7484269
MLS
$525,000
Neighborhood: Port Charlotte Sec 87
4
Beds
2
Baths
2,339
Sq.Ft.
2016
Year Built
11
Days on Site
C7491967
MLS
$599,000
Neighborhood: Port Charlotte Sec 036
4
Beds
3
Baths
1,940
Sq.Ft.
1961
Year Built
11
Days on Site
C7492092
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$619,900
Neighborhood: Venice Palms Ph 1
3
Beds
2F11/2
Baths
1,894
Sq.Ft.
2005
Year Built
16
Days on Site
D6136399
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$599,900
Neighborhood: Punta Gorda Isles Sec 23
4
Beds
2
Baths
2,196
Sq.Ft.
2021
Year Built
18
Days on Site
C7492156
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