According to the U.S. Census Bureau, median rent continues to rise. With today’s low mortgage rates, there’s great opportunity for current renters to make a move into homeownership that stretches each dollar a little bit further.
While the best timeline to buy a home is different for everyone, the question remains: Should I continue renting or is it time for me to buy? Your current situation and your future plans will affect that answer, so we’ve compiled a list of considerations to help you decide if you’re ready to own a home of your own.
1. Rent is Rising
This is one of the top reasons why renters decide to move because in most cases, rent will continue increasing each year. As noted above, the U.S. Census Bureau recently released its quarterly homeownership report, and as the graph below shows, median rent is climbing year after year. When you own a home, you’ll lock in your monthly payment for the life of your loan, creating consistency and predictability in your payments.
2. Make Your Home Yours
This is a big decision-making point for many people who want to be able to paint, renovate, and make home upgrades. In many cases, landlords determine all of these selections and prefer you do not alter them as a renter. As a New Jersey homeowner, you have the freedom to decorate and personalize your home to truly make it your forever home.
There is no law in New Jersey that requires a tenant to give a landlord a key or prohibits a landlord from keeping a key to a rented unit. Unless disputed and settled, your NJ landlord can have access to your space in case of an emergency. If you own your home, however, you’re the one to decide who can come inside. Given today’s health concerns around the pandemic, this may be a growing priority for you.
4. Flexibility for Relocation
If you’re renting, it may be easier to move quickly should you have a job transfer or simply decide it’s time for a change. As a homeowner selling your house can take a little more time. Today, however, with the housing market’s low inventory, this may no longer be the case. Homes are selling at a record-breaking pace, so you may have more flexibility than you think.
5. Building Equity
When you pay your rent, your landlord earns the equity the property gains. If you own your home, the benefits of your investment go directly toward your net worth. Think of the money you can save to use in the future for things like sending children to college, starting a new business, buying a bigger home, or simply downsizing to save for retirement.
6. Tax Advantages
When you own your home, there are additional advantages that work in your favor as well. You can deduct things like your property taxes and mortgage interest (Check with your accountant to see which tax-deductible benefits apply to your situation). When you rent, however, the tax benefits go to your landlord.
It’s up to you to decide if you’d prefer to rent or buy, and it’s different for every person. If you’d like to learn more about renting and homeownership in New Jersey, or your options, Burgos Realty Company has experienced real estate professionals that are ready to help. Let’s connect!