Ten years ago the market was setting the foundation to have a major housing crash. Looking back now, for a lot of people, it would have been better to rent. Unfortunately we didn’t know, and a lot of people learned the hard way, that what goes up, must come down.
Well, the rates came down; all the way down. Some interest rates fell below the national inflation rate. Now we’re beginning to see the bounce back from the bottom. Most experts predict that rates will continue to increase for the foreseeable future.
With this upward trend we’re seeing from both rates and housing prices, we’ve never seen a more opportune time to buy.
In most ways, buying a home trumps renting. If not for the freedom, than for the financial investment. In rare cases, like a limited ability/desire to do the maintenance and upkeep, renting may seem more attractive, but in the long run, you will create a more liberating living situation by buying a modest home.
We want to point out something very interesting about renting. If you have a $1200 house payment and your friend has a $1200 rental agreement. Your friend may think he has a better deal, But in ten years with a 3% rate of inflation, his rent will have gone up every year and would be $1475! Plus all that money he paid in rent is gone. You, on the other hand, have been paying the same $1200 and it has been going towards equity in your house.
If you are ever stumped about whether it would be better for you to rent or buy, you can go to our website and use the tools we have available there. You can also give us a call at 1.800.920.5420.