If you’ve noticed a rent squeeze in the area, you’re not alone. It’s become a widespread issue, and many longtime renters are realizing that paying an outrageous amount each month to rent someone else’s property may no longer be a sound strategy.
According to recent data from Realtor.com, rents in July rose 8.3% from the same time last year. And they are now at the highest rates ever. If you are struggling with the rent vs. buying question, it’s probably time to take a closer look at purchasing a home. Here are few things to consider:
Monthly Mortgage Payments Are Lower Than Monthly Rents
When you’re considering your options, one of the primary things you’ll want to look at is your finances. The National Association of Realtors (NAR) reports that, while monthly mortgage payments are rising slightly, they are still lower than a typical rent payment. The median monthly mortgage payment is now just over $1,200, but the median rent payment nationally is $1,575.
Rents Are Continuing to Increase With No End in Sight
Speaking of rent increasing, this should also be one of your biggest concerns. According to U.S. Census data, the median asking rent has risen steadily since 1988. When you purchase a home, you lock in that payment for the life of the loan. But rents can continue to increase year after year. This gives you a significant advantage over people who continue to rent and are eventually unable to afford housing costs in a desirable area.
There Are Other Advantages to Owning Over Renting
You’ll probably hear plenty of people tell you that it’s better to own a home vs. renting. But the message is loud and clear because it’s true. If you’re still on the fence, here are few additional benefits to purchasing a home:
When you make your mortgage payment, a small portion of that goes to the bank. But most of it is an investment in a piece of property that you own. You are building equity that can help you move up to a larger home or finance your retirement.
A home is more than just a shelter. But there’s only so much you can do with a rental property to make it your own. When you own a home, you can customize the interior and exterior to meet your particular wants, needs, and style.
When something breaks in a rental, you are at the mercy of your landlord for repairs. When you carefully maintain your home, you can be in control of what gets repaired and replaced to give you the most value and security.
4. Tax Benefits
You gain no tax benefits when you rent. But, you can deduct property taxes and mortgage interest when you own your home.
Explore Your Options for Buying a Home in Lexington, SC
If you’ve resolved the buying vs. renting dilemma and would like to explore your options in the Lexington, SC area, we can help. The Lafayette Team is a knowledgeable and successful residential real estate team that helps first-time homebuyers and those looking to level up.
Our real estate professionals have over 17 years of combined experience in the industry. We have intimate knowledge of the area and its builders. Contact our office today to learn more about how we can be of service to you.