It's all about value!

In farming, you need three things: efficiency, perseverance and a positive attitude. Those are the same qualities you need to succeed in home building.

Buying Makes More Sense than Renting

The housing market is rebounding, and that is great news. It’s been a rough few years for a lot of people in real estate, but now more and more people are ready to buy a new home.

Occasionally, when I’m talking to people or doing research online, I find someone saying that it’s better to rent these days because home prices are rising so much that renting a similar-sized home will save money.

However, that’s just not true. A recent report by RealtyTrac Inc. found that in about 91 percent of the counties it researched, owning a home was cheaper than renting a similar home with three bedrooms.

In Lancaster County, home to Keystone Custom Homes, homeowners paid far less per month than renters. Last year, monthly house payments averaged $729. Compare that to the fair-market price of renting a similar home at $1,157. That’s a big difference. In York County, the cost difference between renting and owning is $464. I should mention that RealtyTrac Inc. included the mortgage, insurance and taxes minus any income tax benefits to get the cost of payments for owning a home.

For many people, money was the main rationale to rent instead of buy. But now that buying is cheaper, it’s time to starting looking at why owning a home is the way to go.
Here are five more good reasons to buy a home:

  • Stay regular. Unlike renting, where payments can increase often, mortgage payments stay basically the same with a fixed mortgage.
  • Be efficient. Upgrading a home to be more energy efficient doesn’t cost a lot to make a big difference. Add some insulation, upgrade the thermostat or install weather stripping around the doors.
  • Make it yours. Hang photos, replace bathroom fixtures or add in a ceiling fan. You can decorate it however you want, a freedom renters don’t often have with their homes.
  • Fix it now. If it’s broken, you can fix it. There’s no waiting for a landlord to get around to helping you out.
  • Plant roots. Yes, you can garden and landscape to your heart’s content, but you’re also planting roots for your family.

What was the main reason you decided to buy a home? I’d love to hear from you.

Until next time,

Jeff Rutt