The Benefits of Buying Vs. Renting

Living debt free sounds like the ultimate financial dream, right? Most mortgages have a 30-year term, and living rent- or mortgage-free can be attainable before that 30-year term is up when purchase a home. That is not something you can do when renting.

No, you’re not completely out of the woods after you pay off your mortgage. There are still items like taxes, insurance, and in some instances, HOA and CDD fees. But those can normally equate to only $4,000 per year depending on geographical area. Yep, you read that right — per year.

Homeowners have options that renters don’t.

That’s why you need to consider what your 5-year, 10-year, and 50-year goals are. When it’s time to move on from your home, you have the option to keep the property and rent it out while you purchase your next home. This gives you a source of passive income.

As a homeowner, you won’t have to concern yourself with rent increases or the house you live in being sold. For example, tenants in New York City can expect a 3% inflation of rent every single year. If you’re renting an apartment from a larger complex, you don’t need to be concerned about new management being a letdown either.

Now for some even better parts of owning rather than renting! First, you can make your home your own. As we have all been staying in our homes and scrolling through online platforms on our devices, bathroom and kitchen remodels have been through the roof this year. Other rooms are getting a fresh coat of paint (and it doesn’t have to be neutral if you don’t want it to) and you can hang pictures on the wall with a nail – woah, right?! A lot of times, these updates will add equity to your home when it eventually comes time to sell, giving you more bang for your buck.

Younger people are establishing roots by buying.

Millennials are making up a large portion of today’s homeowners. They are starting their families a bit younger, and like any other generation, they want their children to be stable and familiar in their surroundings so they can flourish. Buying a home can provide that stability, and purchasing in a great school district is a major plus. It also allows the kids to build friendships prior to starting school.

At the Jen Martinez Team, we would love to have a conversation with you to start the homebuying process — especially if you’re currently renting. Give us a call today!