5 Smart and Savvy Reasons to Stop Renting and Start Owning a Home Today

Buying a house is a big decision, and for many people, renting seems like the safer and more practical option. However, there are several great and wise reasons to consider purchasing a home. In this blog post, we'll explore five of them.

1. Building equity: One of the most significant advantages of owning a home is building equity.  Home values have increased significantly over the past several years. Over the past year, home values in Raleigh have increased by 35.7%, and over the past 5 years, they have increased by nearly 86%.  As you make mortgage payments, you are paying off your loan and increasing your ownership stake in your property. Over time, this equity can be used to fund renovations, pay for education, or even as a down payment on a second property.

2. Stable housing costs: When you rent, you are at the mercy of your landlord when it comes to rent increases. However, when you purchase a home with a fixed-rate mortgage, your housing costs will remain stable throughout the life of the loan, barring any changes to property taxes or homeowners insurance.  Over the past year, rents in Raleigh have increased by 13%, and over the past 3 years, the average rent for a 3-bedroom place in Raleigh has increased by about 32%. As rent costs continue to rise, homeownership may become a more affordable option in the long run.

3. Investment opportunity: Real estate has long been considered a solid investment, and for good reason. Home values tend to appreciate over time, meaning that the longer you own your home, the more it will likely be worth. Additionally, owning a home can provide a sense of financial security and stability.

4. Tax benefits Homeownership: also comes with a variety of tax benefits. Mortgage interest, property taxes, and certain home-related expenses may be deductible on your tax return, potentially saving you a significant amount of money each year.

5. Freedom and personalization: Finally, owning a home provides you with a level of freedom and personalization that renting simply cannot match. You have the ability to make changes to your home to suit your lifestyle and preferences without having to get permission from a landlord. Additionally, owning a home provides a sense of pride and accomplishment that renting cannot replicate.

In conclusion, while renting may seem like the easier option in the short term, purchasing a home provides a variety of long-term benefits that cannot be ignored. From building equity and stable housing costs to investment opportunities and personalization, there are many great and wise reasons to consider homeownership. Don't wait until tomorrow to buy when home prices are only going up. Act now and secure your financial future.  Click to schedule a home buying planning/strategy call.

SEARCH FOR HOMES

Sources:

• Federal Reserve's Survey of Consumer Finances: https://www.federalreserve.gov/econres/scfindex.htm
• Zillow Home Value Index (ZHVI): https://www.zillow.com/home-values/
• Tax benefits of owning a home: https://www.irs.gov/taxtopics/tc503
• Hedge against inflation: https://www.investopedia.com/articles/mortgages-real-estate/11/top-reasons-buying-home.asp
• Zumper's report on Raleigh rents: https://www.zumper.com/rent-research/raleigh-nc/3-bedroom/
• Zumper's rent increase data: https://www.zumper.com/blog/national-rent-report-june-2022/