Renting vs Buying?

Affordability: Purchasing a property involves making a down payment, paying closing costs, and making recurring mortgage payments. Contrarily, renting typically just calls for a security deposit and monthly rent payments.

**Last fall we had a little bit of a market adjustment (which was not a bad thing for buyers) due to the rising interest rates. Rates have and will come back down, which makes this a great time to buy if that may be the right decision for you.

1. Plans for the long term: If you intend to settle down for a considerable amount of time, purchasing a home may be a better investment because it enables you to accumulate equity and possibly make money when you sell it. Renting, however, can be a better choice if you're unclear of your future plans or the stability of your career.

2. Flexibility: Buying a home binds you into a fixed place until you sell or refinance, whereas renting gives you more freedom to move around frequently.

3. Costs associated with upkeep and repairs: As a homeowner, you are in charge of looking after your home. On the other hand, when you rent, the landlord is responsible for all upkeep and repairs.

4. Personal preferences: While some people like the freedom and flexibility of renting, others prefer the stability and sense of ownership that comes with home ownership.

The Takeaway: With the real estate market shifting and home prices falling, it may appear that rents will follow suit. The good news is that rents may not rise as much as they have in recent years on a yearly basis. The bad news is that they're still expected to rise in 2023, and a look back shows that they've risen in every decade since 1950, regardless of real estate downturns.

While there is always the possibility that you will buy a house and find that the value decreases during economic downturns, the value (and your equity) has historically increased over time. Furthermore, if you buy a house with a fixed rate mortgage, your payment remains relatively constant year after year, whereas renters face seemingly endless increases. If you're fed up with rising rents, you should seriously consider purchasing a home during this current market shift.

In conclusion, the decision to rent or buy a property boils down to your personal financial circumstances and lifestyle preferences. Before making a choice, it's crucial to carefully consider the advantages and disadvantages and speak with a financial counselor or real estate expert. I'm here to help you with any of your real estate questions!

Are you thinking that now or in the near future maybe be time to buy a home? You can Contact Melissa directly or you can Download my Ultimate Buyers Guide.

Start Your Search Here!

If you are thinking of BUYING in today's market I would love to help you. I have great people on my TEAM that can help you learn more about mortgages and how much you can qualify for and afford. 

Click the link above to find out what you qualify for or simple call Jane or Zach Johanns with New American Funding.

Check out the Mortgage Calculator Too!