Is Renting Still the Right Choice for You? It May Be Time to Consider Homeownership

Renting can make perfect sense at certain stages of life. It provides flexibility, requires less responsibility for repairs, and can be the right choice when you aren't sure where you'll be living a few years from now.

But there comes a point when every long-term renter should ask:

Is continuing to rent helping me reach my financial goals, or am I ready to start building something of my own?

Your Housing Payment Isn't Going Away

Whether you rent or own, you're probably going to have a monthly housing expense.

The important difference is what that payment may accomplish for you.

When you're renting, your monthly payment provides you with a place to live for that month. When you own a home with a mortgage, part of your payment generally reduces the principal you owe. As that balance decreases, you can gradually build equity in the property.

If the home's value increases over time, that may further increase your equity.

That's one reason homeownership has historically played an important role in wealth building for many American families.

Imagine Where You Could Be Five Years From Now

It's easy to think about housing one month at a time.

Let's look further ahead.

If you're paying $1,800 per month in rent, that's $21,600 each year. At $2,000 per month, it's $24,000. At $2,500, you're spending $30,000 annually.

Over several years, those numbers become substantial—and your rent could increase along the way.

Buying a home doesn't mean every dollar of your mortgage payment becomes equity. Homeowners also have interest, property taxes, insurance, maintenance, repairs and potentially HOA expenses.

But ownership gives you something renting doesn't:

The opportunity to build an asset while providing yourself with a place to live.

You May Be Closer to Buying Than You Think

One of the biggest misconceptions I hear is:

"I can't buy because I don't have 20% to put down."

A 20% down payment isn't always required.

Depending on your qualifications, there are conventional, FHA, VA and other financing programs with different down-payment requirements. Some qualified buyers may also have access to down-payment or closing-cost assistance programs.

The question shouldn't be, "Do I think I can afford to buy?"

The better question is:

"What would I actually qualify for?"

Until you've talked with a knowledgeable lender and looked at the numbers, you may not know.

What About Mortgage Rates?

I don't believe anyone should buy a home simply because they're afraid they'll miss an opportunity.

At the same time, waiting indefinitely for the "perfect" interest rate can have a cost of its own.

Mortgage rates change. Home prices change. Rents change. Your income and financial situation can change.

Rather than trying to predict the future, I would rather help you answer a much more practical question:

Does buying a home make financial and lifestyle sense for you today?

If the payment isn't comfortable, the answer may be no.

If you're planning to move again soon, renting may still be the better choice.

But if you're financially prepared, plan to remain in the area and can find a home that fits your budget and needs, homeownership deserves serious consideration.

Your First Home Doesn't Have to Be Your Forever Home

Sometimes buyers believe their first purchase needs to have everything they could possibly want.

It doesn't.

Your first home can simply be the right home for this stage of your life.

Over time, the equity you build may eventually help you move into another property as your needs, family or financial circumstances change.

The important thing is making a smart purchase—not necessarily purchasing the perfect house.

Before You Sign Another Lease, Let's Look at the Numbers

I'm not interested in convincing someone to purchase a home when renting is clearly the better option for them.

What I am interested in is making sure you don't spend another year renting simply because nobody showed you what homeownership might actually look like.

Let's determine an appropriate price range. Let's talk with a qualified lender about financing. Let's compare an estimated mortgage payment with what you're currently paying in rent. And let's see what homes are available within your budget.

Then you can make an informed decision.

You work hard for your money.

Perhaps it's time to find out whether your monthly housing payment can begin helping you build your own equity, your own asset and your own financial future.

Thinking About Buying a Home in the Tucson Metro Area?

Let's talk. Even if you're six months or a year away from purchasing, I'm happy to help you understand the process and develop a plan.

Wes Stolsek

OMNI Homes International

520-404-9773

www.wesleystolsek.com

Consistent. Persistent. Efficient. Helping you make informed real estate decisions.