Are you debating on buying or renting a home right now? Prices are skyrocketing for both, and the availability is also a growing concern. How are you going to get a good deal right now, especially if you are moving to states like Florida and California. The growing cost of living isn’t keeping people from moving to these states by the thousands each day.
If you are one the fence of what to do and you are looking for a bit of guidance, be sure that you are getting it from sources that understand the difference in this market versus other markets. This one is unique and while many see it as overpriced, others see it as an opportunity to cash in. The fact is that the decision is based on a variety of factors that you have to consider, and no blog is going to give you the best and most practical advice. You should always consult with a relator to know exactly what your options are.
Benefits Of Buying
The main benefit of buying a property is that your monthly payments are building equity in your property rather than just going to someone else’s pockets. Many have retired or lived comfortably because they invested in their homes early in life and were able to pay off their mortgage. Someone who bought their home even a decade ago is looking at perhaps triple at what they originally paid, and that’s with potentially ten years paid off of the mortgage if they have not taken out additional loans or refinanced.
Imagine being able to keep all that profit for yourself and not have to worry about heavy taxes or fees usually associated with earning such large sums of money. How great would it be to invest in the property you live in, knowing one day that it could save you hundreds of thousands of dollars or even make you hundreds of thousands of dollars?
Benefits Of Renting
While buying a home is great, there is a reason so many people born after the year 1995 are considering renting over buying. The main reason has to do with the fact that the commitment can ultimately put you in a good or not so good place depending on the market at that time. For example, people are wanting a market crash so that the housing can be more affordable. While that would benefit them, the actual truth is the housing crashes usually come with job crashes, meaning unemployment goes up.
The houses are more affordable because people are making less money. It’s not always the best situation, unless you have a reliable source of income that can give you an advantage in this type of market. If you are trying to rent in an expensive market, you are going to be paying a lot more. However, if you are renting in a weaker market, you could be improving your chances to save and have flexibility.
Why Things Are Different In 2022
The crazy truth is that 2022 has flipped real estate planning and expectations upside down. Some people look at renting as a better option right now because they expect the market to at least reset in the next year or so, allowing prices to go down. Others are focused on buying because they believe prices will not go down and if they do, they will not go down considerably.
The key thing is to work with your realtor and go over your situation, especially financially. Based on the area you are trying to move to, your current needs, your financial situation, your employment situation and more, they can help you create a strategy which will put you in the best possible position. This may be the right time for you to buy and it may not be. A realtor is a great person to rely on to get that information and ensure that you are making confident decisions when it comes to buying or renting a home.