{"id":83,"date":"2024-04-17T15:59:59","date_gmt":"2024-04-17T20:59:59","guid":{"rendered":"https:\/\/twilabertrand.sites.c21.homes\/?p=83"},"modified":"2024-04-17T16:02:41","modified_gmt":"2024-04-17T21:02:41","slug":"understanding-the-benefit-of-buying-a-home-versus-renting","status":"publish","type":"post","link":"https:\/\/twilabertrand.sites.c21.homes\/?p=83","title":{"rendered":"Is It Better To Rent Than Buy a Home Right Now"},"content":{"rendered":"

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Is It Better To Rent Than Buy a Home Right Now?<\/a><\/h2>\n

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For Buyers,\u00a0<\/a><\/span>Rent vs. Buy,\u00a0<\/a><\/span>Buying Tips<\/a><\/span><\/div>\n
Article from Keeping Current Matters<\/div>\n
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You may have seen reports in the news recently saying it\u2019s more affordable to rent right now than it is to\u00a0buy a home<\/a>. And while that may be true in some markets if you just look at typical monthly payments, there\u2019s one thing that the numbers aren\u2019t factoring in: and that\u2019s home equity. Here\u2019s a look at how big of an impact equity can have and why it\u2019s worth considering as you make your decision.<\/p>\n

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What the Headlines Are Based on<\/strong><\/h4>\n

The graph below uses national data on the\u00a0median rental payment<\/a>\u00a0from\u00a0Realtor.com<\/em>\u00a0and\u00a0median mortgage payment<\/a>\u00a0from the\u00a0National Association of Realtors<\/em>\u00a0(NAR) to compare the two options. As the graph shows, especially if you\u2019re not looking for a lot of\u00a0space<\/a>, it can be more affordable on a monthly basis to rent:<\/p>\n

\"No<\/a><\/p>\n

But if you\u2019re looking for something with 2 bedrooms, the gap between the median rent and the median mortgage payment starts to shrink to a difference that may be more doable. The median monthly mortgage payment is $2,040. The median monthly rent for 2 bedrooms is $1,889. That\u2019s a difference of about $151 a month. But here\u2019s what happens when you factor in equity too.<\/p>\n

How Equity Changes the Game<\/strong><\/h4>\n

If you rent, your monthly rental payments only go toward covering your housing costs and your landlord\u2019s expenses. So other than saving a bit more per month and maybe getting your rental deposit back when you move, the money you spent on housing each month is gone \u2013 forever.<\/p>\n<\/div>\n

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When you\u00a0buy<\/a>, your monthly mortgage payment pays for your shelter, but it also acts as an\u00a0investment<\/a>. That investment grows\u00a0in the form of\u00a0equity\u00a0as you make your mortgage payment\u00a0each month and chip away at what you owe on your home loan. Your equity gets an extra boost as\u00a0home values<\/a>\u00a0climb \u2013 which they typically do.<\/p>\n

To give you a clearer idea of how equity can really stack up fast, here\u2019s some data for you. Each quarter,\u00a0Fannie Mae and<\/em>\u00a0Pulsenomics<\/em>\u00a0publish the results of the\u00a0Home Price Expectations Survey<\/em><\/a>\u00a0(HPES). It asks more than 100 economists, real estate professionals, and investment and market strategists what they think will happen with\u00a0home prices. In the\u00a0latest release, those experts say\u00a0home prices<\/a>\u00a0are going to keep going up over the next five years.<\/p>\n

Here’s an example of how equity builds based on the projections from the HPES (see graph below<\/em>):<\/p>\n

\"No<\/a><\/p>\n

Imagine you purchased a home for $400,000 at the start of this year. Chances are, since you bought, you plan to stay put for a while. Based on the HPES projections, if you live there for 5 years, you could end up gaining over $83,000 in household wealth as your home grows in value.<\/p>\n

Here\u2019s how that stacks up compared to renting, using the overall median rent from above:<\/p>\n

\"No<\/a><\/p>\n

While you may save a bit on your monthly payments if you rent right now, you\u2019ll also miss out on gaining equity.<\/p>\n

So, what\u2019s the big takeaway? Whether it makes more sense to rent or buy is going to vary based on your personal finances. It\u2019s not a good idea to buy if the numbers truly don\u2019t work for you. But, if you\u2019re ready and able, adding equity as the final puzzle piece may be enough to help you realize\u00a0buying<\/a>\u00a0is a better move in the long run.<\/p>\n<\/div>\n

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Bottom Line<\/h3>\n

When it comes down to it, buying a home gives you a benefit renting just can\u2019t provide \u2013 and that\u2019s the chance to gain equity. If you want to take advantage of long-term home price appreciation, let\u2019s go over your options.<\/p>\n

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Twila Bertrand, REALTOR<\/strong><\/p>\n

\u00a0CENTURY 21 Cota Realty<\/strong><\/p>\n

1306 N Medford Drive<\/p>\n

Lufkin, Tx 75901<\/p>\n

Serving Buyers and Sellers in Lufkin, Huntington, Nacogdoches, and all over East Texas since 2012!<\/strong><\/p>\n

https:\/\/www.zillow.com\/profile\/Twila%20Bertrand<\/a><\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Is It Better To Rent Than Buy a Home Right Now?   Wednesday April 17th, 2024\u00a0For Buyers,\u00a0Rent vs. Buy,\u00a0Buying Tips Article from Keeping Current Matters You may have seen reports in the news recently saying it\u2019s more affordable to rent right now than it is to\u00a0buy a home. And while that may be true in […]<\/p>\n","protected":false},"author":194391,"featured_media":84,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[27,32,28,31,33,30,24,20,37,21,19,15,36,35,12,34],"class_list":["post-83","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-angelina-county-real-estate","tag-building-equity","tag-buying-a-home","tag-buying-facts","tag-homeowner","tag-homeownership","tag-local-agent","tag-local-realtor","tag-mortgage-facts","tag-real-estate-agent","tag-real-estate-lufkin","tag-realtor","tag-rental-facts","tag-rental-report","tag-texas-real-estate","tag-understanding-value"],"_links":{"self":[{"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/83","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/users\/194391"}],"replies":[{"embeddable":true,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=83"}],"version-history":[{"count":3,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/83\/revisions"}],"predecessor-version":[{"id":87,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/posts\/83\/revisions\/87"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=\/wp\/v2\/media\/84"}],"wp:attachment":[{"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=83"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=83"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/twilabertrand.sites.c21.homes\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=83"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}