{"id":7992,"date":"2022-08-03T06:00:58","date_gmt":"2022-08-03T10:00:58","guid":{"rendered":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7992"},"modified":"2022-08-03T06:00:58","modified_gmt":"2022-08-03T10:00:58","slug":"buying-a-home-may-make-more-financial-sense-than-renting-one","status":"publish","type":"post","link":"https:\/\/blog.sfloridaluxuryhomes.com\/?p=7992","title":{"rendered":"Buying a Home May Make More Financial Sense Than Renting One"},"content":{"rendered":"
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\"Buying<\/p>\n

If rising home prices leave you wondering if it makes more sense to rent or buy<\/a> a home in today\u2019s housing market, consider this. It\u2019s not just home prices<\/a> that have risen in recent years \u2013 rental prices have skyrocketed as well.\u00a0As a recent article from realtor.com<\/em> says<\/a>:<\/span><\/p>\n

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\u201cThe median rent across the 50 largest US metropolitan areas reached $1,876 in June, a new record level for Realtor.com data for the 16th consecutive month<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

That means rising prices<\/a> will likely impact your housing plans either way. But there are a few key differences that could make buying a home<\/a> a more worthwhile option for you.<\/p>\n

If You Need More Space, Buying a Home May Be More Affordable<\/strong><\/h4>\n

What you may not realize is that, according to the latest data from realtor.com<\/em><\/a> and the National Association of Realtors<\/em><\/a> (NAR), it may actually be more affordable to buy than rent depending on how many bedrooms you need. The graph below uses the median rental payment and median mortgage payment across the country to show why.<\/p>\n

\"Buying<\/a><\/p>\n

As the graph conveys, if you need two or more bedrooms, it may actually be more affordable to buy a home even as prices rise. While this doesn\u2019t take into consideration the interest deduction or other financial advantages that come with owning a home, it does help paint the picture that it may be more affordable to buy then rent for that unit size based on nationwide averages. So, if one of the factors motivating you to move is a desire for more space, this could be the added encouragement you need to consider homeownership.<\/p>\n

Homeownership Also Provides Stability and a Chance To Grow Your Wealth<\/strong><\/h4>\n

In addition to being more affordable depending on how many bedrooms you need, buying has two other key benefits: payment stability and equity.<\/p>\n

When you buy a home<\/a>, you lock in your monthly payment with your fixed-rate mortgage. And that\u2019s especially important in today\u2019s inflationary economy<\/a>. With inflation<\/a>, prices rise across the board for things like gas, groceries, and more. Locking in your housing payment, which is likely your largest monthly expense, can provide greater long-term stability and help shield you from those rising expenses moving forward. Renting doesn\u2019t provide that same predictability. A recent article from CNET <\/em>explains<\/a> it like this:<\/p>\n

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\u201c\u2026if you buy a house and secure a fixed-rate mortgage, that means that no matter how much prices or interest rates go up, your fixed payment will stay the same every month<\/strong>. That\u2019s an advantage over renting since there\u2019s a good chance your landlord will raise your rent to counter inflationary pressures.\u201d\u00a0<\/em><\/p>\n<\/blockquote>\n

Not to mention, when you buy, you have the chance to build equity<\/a>, which in turn grows your net worth<\/a>. It works like this. As you pay down your home loan over time and as home values continue to appreciate, so does your equity<\/a>. And that equity can make it easier to fuel a move<\/a> into a future home if you decide you need a bigger home later on. Again, the CNET <\/em>article mentioned above helps explain:<\/p>\n

\n

\u201cHomeownership is still considered one of the most reliable ways to build wealth<\/strong>. When you make monthly mortgage payments, you\u2019re building equity in your home that you can tap into later on. When you rent, you aren\u2019t investing in your financial future the same way you are when you\u2019re paying off a mortgage.\u201d<\/em><\/p>\n<\/blockquote>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re trying to decide whether to keep renting or buy a home, let\u2019s connect to explore your options. With home equity and a shield against inflation on the line, it may make more sense to buy a home if you\u2019re able to.<\/p>\n

Content previously posted on Keeping Current Matters<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

\"BuyingIf rising home prices leave you wondering if it makes more sense to rent or buy a home in today\u2019s housing market, consider this. It\u2019s not just home prices that have risen in recent years \u2013 rental prices have skyrocketed as well.\u00a0As a recent article from realtor.com says: \u201cThe median rent across the 50 largest [\u2026]<\/div>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","footnotes":""},"categories":[3,88,84,121,125],"tags":[],"class_list":["post-7992","post","type-post","status-publish","format-standard","hentry","category-blog","category-first-time-home-buyers","category-for-buyers","category-pricing","category-rent-vs-buy"],"_links":{"self":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7992","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7992"}],"version-history":[{"count":0,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=\/wp\/v2\/posts\/7992\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7992"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7992"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.sfloridaluxuryhomes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7992"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}