The current generation of first time homebuyers, as well as a great majority of America currently, has been lost in the tundra of rentals. With the ever changing and global landscape of today, we have swayed towards the “freedom” of renting instead of buying a home. Buckled under the false security blanket of non-mortgage life, we feel like we can move on a dime. When in reality, living in a rental unit hinders our personal freedom financially and physically in the grand scheme of life.
As a renter, your scope of making your house a personalized home is limited. A home is the investment of a lifetime; a reflection of your individuality and lifestyle. The benefits of owning are endless. According to the National Association of Realtors, here are the top 10 reasons to buy instead of rent:
1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
Source: Wall Street Journal, Brett Arends (9/16/10)
http://www.realtor.org/rmodaily.nsf/pages/News2010091601?OpenDocument
Written by Ciara Brewer on behalf of Monica Brewer
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