Two years of low housing inventory have plenty of potential home buyers asking, “should I just rent instead?” While that may seem like a solution, it is really a stop-gap measure. Renting does not hold a candle to buying and owning your own home.
6 Reasons to Buy a Home Instead of Rent
If you are exploring rentals in Tampa as a way to make in-roads in the current real estate market, you may want to reconsider and look at the benefits of homeownership over renting in Tampa. While some people may say renting a home is better, I respectfully disagree. Here are six reasons why.
1. Build Equity Over Time
One reason to buy a home instead of renting a home is that you can build equity with the former but not the latter.
When you rent, you don’t see that money again. However, when you buy a home, you own a tangible thing. You can use your property to secure financing, such as a home equity loan to make improvements to your house. You can also sell your property and often make back your initial investment. Equity builds over time, so the longer you own your home, the more equity you can build.
2. Homeownership Is a Long-Term Investment
Land is a finite resource. It is something that often increases in value and is not as fickle as the stock market. Home prices have increased year-over-year for the past decade, and there is no indication that will change any time soon.
If you purchase a home today and sell it in ten or twenty years, you may be able to make money off of your purchase. This is not an investment that can be realized immediately — again, it takes time to build equity — but homeownership is one the biggest drivers of wealth in the United States. With Tampa’s popularity booming, there will be a strong demand for single-family homes for years to come.
3. Rising Rents Will Not Stop Soon
Rents are increasing at surprising levels — 28% over last year to be exact. That is a larger increase than home prices saw during that same period. And where is that money going? To pay your landlord’s mortgage on the property.
When you own a home, every payment you make is an investment in your own property. Rather than just giving someone else your money every month, you are building equity and essentially “saving” that money by putting it into property that you can sell at a later date.
4. Predictable Monthly Expenses Make Planning Easier
With a fixed-rate mortgage, your monthly payments are predictable over the life of your loan. With home prices and rents rising at record rates, locking in a mortgage now before home prices and mortgage rates increase can help you better plan and manage your expenses for the life of your loan.
When you rent, there is often a yearly rent increase noted in your lease. If you are looking for a first-time lease right now, though, you may be shocked to learn what a single family home is renting for right now in Tampa. In some neighborhoods, a single-family, three-bedroom home starts at $4,000 to rent!
5. Built-In Stability from Homeownership
I have had so many clients that have been ousted from rentals who then need to find a new place to live. When a rental lease is up, there is no guarantee that your landlord will renew your lease. They may choose to rent to someone else or to sell the home instead. In some cases, landlords will sell the home while occupied. While renters do not need to move out in this scenario, dealing with a new unknown landlord can cause some distress.
When you own a home, you own a home. You do not have to worry about what will happen when the lease is up or start looking for a new rental because you do not like your landlord. This built in stability is ideal for raising a family. There is no question about which school your kids will go to next year or the best places to shop. You will have all the answers and be able to focus on other things.
6. Customize Your Home To Your Taste
While homeownership comes with plenty of responsibility, it also comes with the ability to create the space that best fits your life. When you rent, you often inherit sup-par appliances and plain white walls. You cannot paint, put up new fixtures, or knock down a wall to create that open floor plan that you love.
Yes, homeownership means that you are responsible should the roof start leaking or the dishwasher give up. However, you also get to renovate your home if you so wish and add your own decorative flair. You can choose to take down non load-bearing walls, put in a sunroom, or go crazy with tropical landscaping and a tiki bar. There is something freeing in being able to alter a property to suit your needs.
Ready to Buy?
Make an investment into your future. Let’s work together to find the right home for you and your goals. Whether you are looking for a condo, a single-family home, or a vacation home, I can help you identify ideal listings in your preferred neighborhoods. Contact me today and let’s get you the keys to your new home!