why now is a great time to buy if you are a home renter

If you’re a renter, you’ve probably noticed that housing prices have been going up over the past few years. As home prices continue to increase, there’s one inescapable fact that many people overlook – the cost of renting your home will never go down! If you are thinking about buying a home or have ever thought about buying a home, now may be the best time for you to buy and enjoy your dream of home ownership.

Benefits of buying a home compared to being a renter

1. You'll be sitting on your own nest egg. Renting costs money every month, whereas once you own a home you are able to make mortgage payments and pay off your home's principal each month.

2. A mortgage can protect you from the inevitable future rent increases. Especially if you have an affordable, 30-year fixed mortgage with an affordable rate at the start.  Depending on your terms, it stays at that low rate until the end of its term, when it reaches maturity and begins to fluctuate with market rates again.

3. Buying a new home also gives you more equity - as your house appreciates in value over time.

4. The best reason to buy now: Owning a new home means that you have one less thing to worry about - since renting can make you vulnerable. Being a homeowner you are alleviating yourself from the risk of being evicted, or priced out of the home you love.

5. Being a home-owner can bring possible tax benefits. Just another great financial based reason to consider purchasing a home. 

6. Full control over your home's design, appearance, and home-improvement projects. 

Creating your own nest egg

When you decide to purchase a home over renting a home, you are choosing to make a long-term investment in your future. Continuing to pour your hard earned money into someone else’s investment is not beneficial to you in the long run. As they build their credit, and investment portfolio, you are stuck footing the bill. By going through the steps to buy your own home, it can allow you to be in a position later where the investment will pay-off greatly. Not only for yourself, but potentially for your family or loved-ones. 

Protect against rent increases

By taking a look at the rental market in any city, you will notice an increased trend of prices being raised. There are some laws going into place trying to prevent further rent increases, but at the moment not much can be done if your landlord decides to raise rent by 20% to compete with short-term rental prices. If you own your home, you are fully protected from the hassle and stress of dealing with a surprise rent increase.

Owning a home allows you to start building equity

Equity is the difference between how much your home is worth and how much you owe on your mortgage. By paying your mortgage every month and lowering the principal balance you will own a continually larger portion of your home. This is the act of building equity.  Building equity increases the amount of money you have in your home that you may be able to use now or in the future.

Make yourself less vulnerable

Technically, at any point in a rental agreement, that contract can be terminated. Leaving your and your family in a position of needing to find a new housing solution. With rental prices increasing and demand for short-term-rentals booming, finding the new perfect rental may cause a lot of stress. By owning your home, you are taking back the power and removing doubts such as eviction, home-sale, or being priced out your home. 

You have certain tax benefits being a homeowner

Did you know that by being a homeowner you open yourself up to a whole new realm of possible tax benefits? Things you are potentially able to deduct range from interest on your mortgage rate, to cost of your private mortgage insurance, and even home improvements. The number of tax benefits a home-owner has versus a home–renter is vastly different. Just another reason why being a homeowner can be greatly beneficial to your pocketbook. 

You have all of the power to make any changes or updates you seem necessary

Owning your home allows you to feel comfortable making changes to make it feel like a more personal space. Go ahead, paint those cabinets, change out those carpets. Update the appliances if you want to, with total confidence it is only going to increase the value of your investment. Landlords don’t often let large changes to the home be made. By purchasing your own, you can truly create the home of your dreams. 

Bonus tip

Look for a home with an ADU or a large piece of land where you can build another structure. That allows you the possibility for an additional income stream, while continuing to pay off your mortgage. This would allow you to continue saving money, or investing it back in the property that will continue to make its value grow.