Renting vs. Buying
Is it better to rent or to buy? It’s a topic that’s been debated over the years, with some people favoring the stability of home ownership, and others preferring the freedom of renting. While the answer may change as the market fluctuates, in today’s market, it’s almost certainly better to buy.
What’s better about buying?
- Owning your home may save you money. Did you know most apartments are now considered luxury? The average rent runs around $986, with Phoenix-area rental rates having jumped almost 15% over just a few years. Several online sites offer calculators that allow you to compare projected rental rates to projected mortgage rates so that you can see how long it would take for your rental cost to exceed the cost of purchasing your home. In most cases, that number is only about three to five years.
- Come tax time; you’ll see even more savings. Owning a home costs less than renting as time progresses, but you’ll see the difference as soon as April rolls around. Homeowners can deduct mortgage interest, property tax, mortgage points, and more. These deductions don’t just lower your tax burden at filing time; they make homeownership a cheaper option than renting.
- Owning can also make you money. When you rent, the money goes into your landlord’s pockets. When you own your home, your mortgage payments help build equity, turning your home into a valuable asset.
- Renting limits your lifestyle options. Are you a pet owner? Finding a rental that accepts your furry family member can be problematic. You also have less privacy when you rent, and less control over your living space. When you own your own home, you can decorate it as you see fit, remodel if you want to, and be certain of the safety of your surroundings.
- Part of the fun of owning a home is watching it grow in value. Currently, home prices are increasing at an average of about 4.5% per year in the Phoenix area, and that trend doesn’t show signs of slowing any time soon. What does that mean for you? It’s simple: a home worth $200,000 will continually grow in value, and after ten years of appreciation at a modest 4.5% rate, it will be worth $286, 948.
- It may be easier than you think to buy a home. There are many programs available, some offering a low down-payment or even no down payment at all for qualifying applicants. An experienced mortgage professional can help you find the program that meets your needs and gets you into the home you want.
If you’re ready to stop renting, Cachet Homes custom-builds exceptional homes that anyone would be proud to own. Incorporated in 1990, Cachet Homes doesn’t just build homes with simple elegance and sophisticated style; we also create neighborhoods consistent with home values. Our luxury homes are built with care and concern for the community, and we are committed to operating with social responsibility for surrounding land use. To learn more about how we can put you in a beautiful home of your own, contact us through our website.