Owning a home is a much better financial decision than renting one. Here are three reasons why.
If you’re debating whether you should buy or rent a home, you should know that owning a property has some great financial benefits. Here are the three reasons that you should buy instead of rent:
1. Homeownership is a good investment. Homes generally appreciate every year, so your down payment could very easily double. If you buy a home for $300,000 with $10,000 down, a 5% appreciation will practically double your investment in the first year.
2. You’re paying for housing either way. Although renting a home won’t involve taxes and maintenance costs, renters should know that stuff is already built into their rate. When those repairs go up, the rent will go up too. You might as well pay for that stuff on your own and get the benefits of owning an appreciating asset.
3. Owning a home is a hedge against inflation. Everyone knows that rent rates move based on inflation, so they will always go up. Homeownership, however, allows you to lock in an interest rate for 15 or 30 years to protect against inflation.
If you have any questions for us about this list or about buying/selling a home, don’t hesitate to reach out today via phone or email. We look forward to hearing from you.