The Benefits of Buying vs. Renting

If you’re in the market for a new home, you likely are considering two options: renting or buying. And while there are advantages and disadvantages to both, if you’re in a position to buy, now is the time to make a move. The benefits of homeownership are huge, and in terms of a long-term investment, it’s always going to make more sense than renting. Here are three reasons you should buy instead of rent: Buying Allows You To Build Equity The main benefit to buying vs. renting is that buying allows you to build equity in your home. When you rent a home, the money you pay each month in rent goes to your landlord. But when you buy, your mortgage payment goes towards paying down the balance of your loan and gets you one step closer to owning the property in full. But even before you own that property, you’re building equity. Equity is the difference between the value of your property and how much you owe on your mortgage. If you buy your house in a strategic way (like purchasing a home in an emerging neighborhood where property values are rising), you can build a solid amount of equity in your property in a short period of time. To show you this in action, let’s say you purchased a home today for $500,000 dollars and three years from now it’s valued at $600,000. Let’s say you put a 20% down payment of $100,000 on the home and you secured a 30 year fixed rate mortgage with a 4% interest rate. According to this mortgage calculator, the remaining balance on your mortgage after 24 months would be $385,624.72. Your total equity in the home would be calculated as the current value of the home ($600,000) minus the remaining balance on your mortgage ($385,624.72), or $214,375.28. Building home equity is not only a huge advantage of owning your own home, it’s also a great way to increase your wealth. Owning Your Home Gives You More Flexibility Owning your home also gives you significantly more flexibility. When you rent a home, there aren’t many changes you can make without permission from your landlord. Even minor cosmetic changes like adding an accent wall to your living room or hanging pictures can cause you to lose money from your security deposit. This rigidity when it comes to making changes can make it challenging for a rental to feel like home. When you own your own property, you can make whatever changes you want and add those personal touches that really make a house feel like a home. Sick of the carpet in the living room? Change it! Want to add new tile to the bathroom? It’s your call! Ready to expand and add an addition to the back of the building? Knock yourself out! Being a homeowner gives you the kind of flexibility you need to change the property however you see fit. And that flexibility can go a long way in making your house feel like a true home. Interest Rates Are At Historic Lows Another major benefit of buying now, in 2017, is that interest rates are near historic lows. Interest rates for 30-year fixed mortgages approached an all-time low of 3.41% in July of 2016. And while rates are slightly higher nearly a year later (at the time of publication, Bankrate placed the rate at 3.84%), interest rate are still wildly lower than they have been in recent years. West Palm Beach mortgage brokers can aid in securing a mortgage when interest rates are low, saving you tens of thousands of dollars over the course of the loan. And with these low interest rates, you might even find that buying is more affordable - and has a lower monthly payment - than renting. If you’re in a position to buy, now is the time to do it. Ultimately, the decision to rent or buy is a personal one. But if it’s financially feasible, buying always offers more benefits than continuing to rent. If you are considering buying or selling a home & require more assistance, visit Ideal Lending Solutions online.     Property Listings Reviews on Zillow 2936191 "We have known David Caracausa for over 2 decades. The marketing and eventual sale of our house was quick, efficient and painless. It only took about ... more "5.0/5.0 by coachjane122869426 "David is the consummate professional. We selected him as our realtor after interviewing other well regarded realtors in our market. He distinguished ... more "5.0/5.0 by meheister2435509 "David Caracausa was an outstanding personal representative for my recent home sale in North Wales, Pa. He was excellent in all areas from staging of ... more "5.0/5.0 by allan truant
The post The Benefits of Buying vs. Renting originally appeared on David Caracausa's ActiveRain Blog

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