Even With Rates Rising, Here’s Why it’s a Good Time to Buy Versus Rent

May 1, 2023

Choosing to become a homeowner is generally one of the biggest decisions of your life. It’s a financial and emotional decision that must be made based on your individual circumstances. If paying rent has you leaning toward the security of owning your home, here’s why it’s a good time to buy.

Financial Benefits of Owning a Home

Hedge Against Inflation: Homeownership provides stability. With a fixed-rate mortgage, your monthly payment can be locked in, which is especially important in today’s inflationary environment.

Pay Your Mortgage (Not Your Landlord’s Mortgage): As you pay your mortgage, its balance is reduced, building equity in the property.

Appreciation. While every market is different, home values have historically appreciated about 4% annually. Plus, you enjoy appreciation on the total price of the home, not just the cash you put down.

Tax benefits. Your tax advisor can help determine eligible tax deductions, which generally include mortgage interest and property taxes. 

The net benefits of paying a mortgage often outweigh the monthly rent you’ll pay – and as a homeowner, you’ll have a valuable asset.  

If you’re trying to decide whether to buy a home or continue renting, your Long & Foster agent can help you explore your options.

Alternatively, if you’re planning to sell your home, they can help you prepare it to get the most out of your investment.