Privacy, security, and comfort are just the beginning of why homeownership is so valuable.
Let’s go over three simple ways buying a home gives you a clear financial advantage over renting.
1. Don’t Worry About Increasing Rent Prices
Rent has more than doubled in the past 20 years! A recent US Census Bureau survey stated median asking prices for rent rose roughly $185 in the past year alone. The graph below illustrates the steady rise in rent prices over the past two decades.
Renters have little to say over the cost of their rent, but homeowners can lock in a payment plan that stays the same throughout their mortgage.
2. Directly Benefit from Home Price Appreciation
Within the last year, home prices nationwide have appreciated an average of 12.6%. This map from the Federal Housing Finance Agency (FHFA) shows how the entire United States saw double-digit home price appreciation from the first quarter of this year compared to last.
If you bought a home in 2020 for $300,000, it would now be worth an additional $37,800 based on the average appreciation rate!
3. Build YOUR Wealth
A recent Home Price Expectation Survey, (a survey of over a hundred economists, real estate experts, and housing market analysts), expects home price appreciation to continue to rise at the following rates:
2021: 6%
2022: 4.5%
2023: 4%
2024: 4.6%
2025: 3.5%
The sooner you get into a home, the faster you can start to benefit from these expected increases. You could see your wealth grow just by making your monthly payments. As a renter, the only person’s wealth you are helping grow is your landlord’s.
Bottom Line
Don’t make the mistake of renting any longer!
If you have been having trouble getting your offer accepted, try asking about our Bulletproof Buyer Program. It’s a four-step plan that will help put you ahead of the pack in this competitive market.