Garner Realty Owning Vs Renting

 

It’s no secret that the past couple of years have been crazy for the housing market. But when the Fed began raising interest rates, many prospective homebuyers began worrying whether their window to purchase a home was closing. “Is it still a good time to buy a house?”

 

The housing market has been through a lot. As the Covid era reshaped the work from home model and pumped tons of cash into the economy, many homeowners and first time home buyers flooded the market. This increased demand for an already slim supply of homes for sale had a huge effect on inventory nationwide.

 

The cost of housing ballooned and so did inflation, so the Federal Reserve kicked off a campaign to raise interest rates in hopes of curbing demand.

 

 

For many home buyers, interest rates are a top consideration. The typical mortgage term can last up to 30 years so it’s tough to think you may be stuck with anything less than the lowest rate possible.

 

However, even with the rate increases and the overheated market that has started to cool, housing prices are still at their highest. Many people who can’t afford the housing value increase are deciding to wait, but rents are also skyrocketing across the country. What to do? Owning and renting both have key advantages and disadvantages that should be considered before making a choice.

 

	PROS	CONS
Buying	May build equity that could be accessible through home equity products Increased credit rating with on time mortgage payments No landlord to answer to More stability (especially with schools) Possible tax benefits Can improve or upgrade home to your taste	May require an initial investment and upfront paperwork Rising home prices and low inventory in many markets Responsible for repairs,maintenance, and upkeep
Renting	Fewer upfront costs and paperwork Not responsible for maintenance, repairs No need to worry about falling home values No property tax bills	Landlord could raise rent Might have to relocate on short notice if the landlord decides to sell the property Builds equity for the landlord Limited vacancies in competitive rental markets No tax benefits Less freedom in design choices (paint colors, appliances)

In this market, the perfect home is harder to come by. If you find the perfect home, there’s no reason to let a short-term problem like interest rates deter you from purchasing your dream home. In most cases you can refinance, but you can't always find your dream home!

 

Refinancing in the future is an excellent option for buying real estate without the remorse.

 

For help with your mortgage questions, click on the Finance Link.