LET'S GET REAL ABOUT RENTING
Renting has it's advantages, namely maintenance for one. Rent costs have escalated recently due to a shortage of homes for purchase or rent. Rent costs is one of the two biggest contributors to inflation currently. Some economists expected to see rents begin to go down by now, but so far it is not the case, maybe next month.
Getting real about renting, if one is paying $1300 a month in rent, that equates to $15,600 a year. In five years that is $78,000. That's a lot of money used to pay off the owner of the property's mortgage. What if instead those funds went toward a mortgage, reducing the balance while equity increases.
When a rent lease is up the renter walks out as he/she walked in. When a homeowner sells especially after five years they walk out with something.
Granted with home prices rising homes have become less affordable for renters. That is changing. Interest rates are finally on a path of reduction. This will make homes more affordable as to interest rate, however, the competition for available homes will be a challenge. With expectation rates are dropping, some renters are waiting it out. My advice is to get ready now and weigh the option of buying now before the lowest rates are reached. Renters give yourselves a fighting chance!
Those homebuyers over the last year or so who took the plunge in spite of home prices and rates are going to be rewarded handsomely with refinancing. They have the benefit of lowering the rate AND the equity they gained by buying when they did.
Renting is always going to be the best option for some folks. For others, let's get real about the pros and cons of renting. Let's get real about homeownership, one of the best wealth building options. Getting prepared to buy is key. Understanding options is key. Is now the time for you to stop renting and start owning?
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