Monday, December 27, 2021 / by Lynn Boyarski
Once again, it’s seeming like homeownership is the right move for a lot of people, especially for renters.
When the pandemic hit, rents decreased for many people. But now that things are returning to normal, rents are on the rise. In some places, rent has increased more than 40% since the beginning of the pandemic.
If you’re a renter, this can turn into a serious problem. You might think everything is going great, but then BAM, your lease is up for renewal and your landlord slaps a steep rent hike on you.
You’re faced with 1) sticking it out and paying the more expensive rent or 2) finding a new rental for cheaper, which sadly won’t be easy in our market.
But there’s a third option: homeownership.
If you’re a current renter and you’re worried about rent increases (as you should be), homeownership might be the right move for you. Why?
- Your monthly payment will stay the same. No ridiculous increases every year when you have a fixed-rate mortgage. You know exactly what you’re going to pay.
- Interest rates are low right now, which means your mortgage payments could be lower.
-You’ll build equity and make an investment in your future. When you’re renting, you’re basically throwing away your money because you never see it again. But when you own a home, you’re constantly building equity. And then when you sell that home 5, 10 or 30 years down the line, you get all the equity you’ve built up back in your pocket. Your home is an investment in your portfolio, not just a place to live.
If you’re curious about becoming a homeowner, contact us! We have tons of resources on just how to prepare for buying a home and then how to actually buy one, and we are happy to guide you along the way.