Avoid the Rental Trap in 2023
If you’re a renter, you likely face an important decision every year: renew your current lease, start a new one, or buy a home. This year is no different. But before you dive too deeply into your options, it helps to understand the true costs of renting moving forward.
Homeownership Is an Investment in Your Future
There are many people thinking about buying a home, but with everything affecting the economy, some are wondering if it’s a smart decision to buy now or if it makes more sense to wait it out. As Bob Broeksmit, President and CEO of the Mortgage Bankers Association (MBA), explains:
Should You Still Buy a Home with the Latest News About Inflation?
While the Federal Reserve is working hard to bring down inflation, the latest data shows the inflation rate is still high, remaining around 8%. This news impacted the stock market and added fuel to the fire for conversations about a recession.
The Emotional and Non-financial Benefits of Homeownership
With higher mortgage rates, you might be wondering if now's the best time to buy a home. While the financial aspects are important to consider, there are also powerful non-financial reasons it may make sense to make a move. Here are just a few of the benefits that come with homeownership.
Why Buying a Home May Make More Sense Than Renting [INFOGRAPHIC]
![Why Buying a Home May Make More Sense Than Renting [INFOGRAPHIC] | Simplifying The Market](https://www.simplifyingthemarket.com/wp-content/uploads/2022/09/20220930-MEM.png)
Some Highlights
- If you’re trying to decide whether to rent or buy a home, consider the advantages homeownership offers.
- Buying a home can help you escape the cycle of rising rents, it’s a powerful wealth-building tool, and it’s typically considered a good hedge against inflation.
- If you’re ready to take advantage of the benefits of homeownership, let’s connect to explore your options.
The U.S. Homeownership Rate Is Growing
The desire to own a home is still strong today. In fact, according to the Census, the U.S. homeownership rate is on the rise. To illustrate the increase, the graph below shows the homeownership rate over the last year:
Buying a Home May Make More Financial Sense Than Renting One
If rising home prices leave you wondering if it makes more sense to rent or buy a home in today’s housing market, consider this. It’s not just home prices that have risen in recent years – rental prices have skyrocketed as well. As a recent article from realtor.com says:
Should I Rent or Should I Buy? [INFOGRAPHIC]
![Should I Rent or Should I Buy? [INFOGRAPHIC] | Simplifying The Market](https://www.simplifyingthemarket.com/wp-content/uploads/2022/07/20220715-MEM.png)
Some Highlights
- It’s worth considering the many benefits of homeownership before you make the decision to rent or buy a home.
- When you buy, you can stabilize your housing costs, own a tangible asset, and grow your net worth as you gain equity. When you rent, you face rising housing costs, won’t see a return on your investment, and limit your ability to save.
- If you want to learn more about the benefits of homeownership, let’s connect today.
How Homeownership Impacts You
June is National Homeownership Month, and it’s the perfect time to reflect on how impactful owning a home can truly be. When you purchase a house, it becomes more than just a space you occupy. It’s your stake in the community, an investment, and a place you can put your stamp on.
How Homeownership Can Bring You Joy
If you're trying to decide whether to rent or buy a home, you're probably weighing a few different factors. The financial benefits of homeownership might be one of the reasons you want to make a purchase if you’re a renter, but the decision can also be motivated by having a place that’s uniquely your own.
A Key To Building Wealth Is Homeownership
The link between financial security and homeownership is especially important today as inflation rises. But many people may not realize just how much owning a home contributes to your overall net worth. As Leslie Rouda Smith, President of the National Association of Realtors (NAR), says:
The Many Benefits of Homeownership
The past two years have taught us the true value of homeownership, especially the stability and the feeling of accomplishment it can provide. But homeownership has so much more to offer. Here’s a look at a few of the non-financial and financial benefits of owning a home. If you’re looking to buy a home today, think about all the ways homeownership can impact your life.
Are You Wondering if This Is the Year To Buy a Home?
Every year, many renters ask themselves the same question: Should I continue renting, or is it time to buy a home? If you’re a renter, chances are you’ve asked yourself that question at least once, and it’s likely because you’ve faced an increase in your monthly housing costs over time. After all, according to Census data, rents have risen consistently for decades.
The Difference Between Renting and Owning [INFOGRAPHIC]
![The Difference Between Renting and Owning [INFOGRAPHIC] | Simplifying The Market](https://www.simplifyingthemarket.com/wp-content/uploads/2022/02/20220225-MEM.png)
Some Highlights
- If you’re deciding whether to rent or buy, consider the many financial benefits that come with owning a home.
- As a renter, you build your landlord’s wealth and face rising costs. As a homeowner, you build your own net worth and can lock in your monthly payments for the length of your loan.
- If you’re weighing your options, remember that owning a home is a decision that has considerable financial perks. If you want to learn more, let’s connect to talk about the perks of homeownership.
Real Estate Voted the Best Investment Eight Years in a Row
In an annual Gallup poll, Americans chose real estate as the best long-term investment. And it’s not the first time it’s topped the list, either. Real estate has been on a winning streak for the past eight years, consistently gaining traction as the best long-term investment (see graph below):
Owning Is More Affordable than Renting in the Majority of the Country
If you were thinking about buying a home this year, but already pressed pause on your plans due to rising home prices and increasing mortgage rates, there’s something you should consider. According to the latest report from ATTOM Data, owning a home is more affordable than renting in the majority of the country. The 2022 Rental Affordability Report says:
Avoid the Rental Trap in 2022
Are you one of the many renters thinking about where you’ll live the next time your lease is up? Before you decide whether to look for a new house or another apartment, it’s important to understand the true costs of renting in 2022.
4 Things Every Renter Needs To Consider
As a renter, you’re constantly faced with the same dilemma: keep renting for another year or purchase a home? Your answer depends on your current situation and future plans, but there are a number of benefits to homeownership every renter needs to consider.
Renters Missed Out on $51,500 This Past Year
Rents have increased significantly this year. The latest National Rent Report from Apartmentlist.com shows rents are rising at a rate much higher than the three years leading up to the pandemic:
Experts Agree: Homeownership Provides a Path to Long-Term Wealth
A recent survey from LendingTree.com found there are multiple reasons why Americans would choose to purchase a home instead of renting. Some of the most popular non-financial reasons given include:
111,285 Reasons You Should Buy a Home This Year
The financial benefits of buying a home versus renting one are always up for debate. However, one element of the equation is often ignored – the ability to build wealth as a homeowner.
Reasons Renters Buy [INFOGRAPHIC]
![Reasons Renters Buy [INFOGRAPHIC] | Simplifying The Market](https://www.simplifyingthemarket.com/wp-content/uploads/2021/10/20211001-MEMa.png)
Some Highlights
- When deciding whether you should rent or buy, make sure you’re considering these factors.
- Buying a home means consistent monthly payments. Homeownership also helps to build your wealth. And owning a home gives you greater flexibility than renting.
- If you’re ready to take advantage of the perks of homeownership, let’s connect to explore your options.
Have You Ever Seen a Housing Market Like This? [INFOGRAPHIC]
![Have You Ever Seen a Housing Market Like This? [INFOGRAPHIC] | Simplifying The Market](https://www.simplifyingthemarket.com/wp-content/uploads/2021/09/20210917-MEM.png)
Some Highlights
- Whether you’re buying or selling – today’s housing market has plenty of good news to go around.
- Buyers can take advantage of today's mortgage rates to escape rising rents and keep monthly payments affordable. Sellers can reap the benefits of multiple offers and a fast sale.
- If this sounds like good news to you, let’s connect today so you can capitalize on the unique opportunity you have in today’s market.
What You Can Do Right Now To Prepare for Homeownership
As rent prices continue to soar, many renters want to know what they can do to get ready to buy their first home. According to recent data from ApartmentList.com:
The Difference in Net Worth Between Homeowners and Renters Is Widening
Becoming financially secure is an important goal for many people today, but some don’t realize just how much homeownership can help them achieve that dream. A recent report, The Journey Toward Financial Freedom, surveys Americans about their perspective on financial wellness and their goals. It shows there may be a significant misconception about the role owning a home plays in building wealth:
