Renting, especially in a challenging economy, is a popular way to move out on your own before you’re ready to purchase a home. However, renting isn’t always the most cost-effective housing option. There are plenty of benefits of buying vs. renting a home, some of which may surprise you.
Recent studies show that homeownership in the United States is about 65.8%, the majority of the population. It’s possible that many of these homeowners rented first but have now chosen to purchase their homes for various reasons. If you’re wondering about the pros and cons of renting vs. buying, even beyond financial reasons, keep reading!
1. Stable Mortgage Costs
Renting a home or an apartment comes with the risk of yearly rent increases, and they’re not always affordable. In 2021, some rental markets saw a 30% or more increase in rent year-over-year. However, one of the advantages of buying a home with a fixed-rate mortgage is that your monthly mortgage payment remains stable through the lifetime of your mortgage. The benefits of buying vs. renting with regard to monthly rent and mortgage payments make owning your home a much more stable monthly investment.
2. Ownership Provides Appreciation
One of the significant long-term benefits of buying vs. renting is the appreciation gained over time. When you rent, you don’t accumulate any of the increased monetary value of your home. (However, your landlord does!)
Over the last two years, Georgia homeowners saw an average yearly appreciation rate of almost 16%. The 15.91% increased value annually can mean thousands of dollars earned annually just by owning and selling at the right time.
If you’re wondering if new construction appreciates faster, we have good news. While new construction homes require more upfront costs to purchase, the value of a brand-new home remains stable over time due to more modern features and finishes, newer appliances and systems, and less required upkeep.
3. Freedom to Make Home Your Own
With rental rules like no painting, wall hangings, and no renovating, renting may stifle your personality and creativity at home. If you enjoy making your house a home with personal touches, decor, and even significant changes to the floor plan, owning your home will give you the freedom to change your house within your desires. One of the main advantages of buying a home is it’s yours, and you can change it however you want.
Similarly, with a new construction home, you may have the opportunity to make your design selections and changes to your home along the construction process. At Brock Built, you can personalize your home with special finishes, features, and appliance packages.
4. Emotional and Mental Benefits
According to a 2019 study, nine out of 10 homeowners say owning makes them happier than renting. And while it’s not proven how long this happiness lasts, the numbers are astounding. The feeling of accomplishment when you purchase a home, plus the satisfaction you feel in your own home, may be part of the increase in happiness.
Similarly, one of the benefits of buying vs. renting is becoming a part of an established community. You can become friends with your neighbors, who are more likely to stay in their homes longer than renting neighbors, and if you have children, you can get involved in schools or local groups. Finding a solid community can improve your mental and emotional health.
5. Future Earning Potential
Finally, when you feel it’s time to move on from your home, an advantage of buying vs. renting is that you can increase your income by keeping your home and renting it for profit! Especially in hot rental markets, a home can rent for 20% more (or higher) than the monthly mortgage payment, depending on mortgage rates and other financial variables.
When you sit down to make your own list of renting vs. buying pros and cons, be sure to evaluate whether or not a new construction home is an option for you. With Brock Built’s spectacular incentives programs, buying a new home can be more affordable than you think. Plus, new construction homes come with the ability to personalize your home, choose your lot, and find a brand-new home in some of the best communities. If you’ve decided buying a new home is the right move for you, contact our team to get started!