Renting vs Purchasing in 2024
(Published on - 1/22/2024 2:29:39 PM)
Written by Doug Radford, President of Realty Executives New Jersey
With home prices and interest rates elevated, would be first time home buyers are asking themselves if continuing to rent makes more sense than purchasing. Here are five potential benefits of home ownership over renting in 2024:
Equity Buildup: As you make mortgage payments, you build equity in your home. This can be seen as a form of forced savings, contributing to your overall net worth.
Stability and Predictable Payments: Fixed-rate mortgages provide stability with consistent monthly payments, allowing homeowners to better budget for the long term. Renters, on the other hand, often face rent increases over time.
Tax Advantages: Homeowners may benefit from tax deductions, such as mortgage interest and property tax deductions. These deductions can result in potential tax savings compared to renting.
Appreciation: Over the last 50 years, home values have appreciated 5% annually, on average, leading to potential financial gains when homeowners decide to sell. Renters do not benefit from property appreciation.
Personalization and Control: Homeownership allows individuals to personalize their living space, make modifications, and have greater control over their property. Renters, on the contrary, are often limited in making significant changes to the property.
Choosing to purchase a home over renting in 2024 offers numerous financial and lifestyle advantages. Homeownership not only provides a pathway to build equity and accumulate wealth through potential property appreciation but also ensures stability with predictable mortgage payments. For those waiting for interest rates to come down, keep in mind that increases in home prices may very well offset any decline in interest rates. Don’t wait, buy your first home now!
