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,