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The Perks of Buying Versus Renting

Dated: May 1 2024

Views: 135

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

1. Home Values Typically Go Up Over Time

There has been some confusion over the past year about which way home prices are headed. Make no mistake, nationally they are still going up. In fact, over the long-term, home prices almost always go up. 

Using data from the Federal Reserve, the overall trend is home prices have climbed steadily for the pasy 60 years. There was an exception during the 2008 housing crash when prices did not 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. 

2. Rent Keeps Rising in the Long Run

Here is another reason you might 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 are likely to feel the squeeze of your rent getting higher. 

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 are investing in your future. 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 says, 

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

Bottom Line

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

Blog author image

Katlyn Soli

Katlyn Soli is a full time realtor specializing in residential real estate and helping buyers and sellers in the Grand Forks, North Dakota area. Katlyn is committed to providing her clients with excel....

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