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We know that buying a home is a big decision to make and sometimes renting feels like the easier solution. But there are so many benefits to owning your own home and you might be surprised at what you could afford. Here are the top 5 reasons you should consider buying instead of renting.
1. You Can Build Equity and Financial Stability
Owning your own home is one of the best financial investments you can make. You build equity through home price appreciation and as you pay off your mortgage. As your home value goes up and you pay down your mortgage, your net worth increases. Home ownership is a great step toward building long-term wealth.
2. You Don’t Have to Put 20 Percent Down & Your Monthly Mortgage Could be Less than Rent Prices
Many people think that you have to put a 20 percent down payment to buy a house, which makes many people think they can’t afford to. This is a myth - you don’t have to put 20 percent down. The median down payment for homebuyers in 2022 is 13 percent of the purchase price, according to NAR. Plus, rent prices can be very high in Philadelphia. According to Zumper, the median rent in Philadelphia in 2022 is $1,447 per month. Your mortgage payment could be lower than that! If you put that money towards your own home, you’d build equity for yourself instead of building equity for your landlord.
3. Unlike Rent, Your Fixed Mortgage Can’t Go Up
As mentioned above, the average rent price in Philadephia in 2022 is $1,447. As a renter, your landlord will often raise the rent each time you sign a new lease unless you’re in a rent controlled place. With a fixed-rate mortgage, it can never go up. You will pay a fixed amount each month with a fixed interest rate for the amount of time on your loan. Having a fixed mortgage payment also protects you from rising inflation.
4. You Can Personalize the Property Any Way You Want
When you own your own home, you can decorate it and renovate it in any way you’d like. You can paint the walls any color you want, you can change the floors, or renovate the kitchen without having to ask for permission or worrying about losing your security deposit. Often times, these improvements will increase the value of your property as well! It also gives you great pride in your home as it really is all yours.
5. A Landlord Can’t Kick You Out
As a renter, your landlord could give you an unexpected eviction notice for a number of different reasons. They could be selling the home, renting it to someone else, etc. Owning your own home gives you an additional sense of security knowing that you can stay there as long as you want to.
Plus, if you want to move somewhere else, you could always rent out the property as an additional form of income!
If you’re interested in discussing your options of buying or renting in Philadelphia, contact us!
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