Clients often ask, “Is Now a Good Time to Rent or Buy a Home? “ The choice between buying and renting is definitely one of the biggest financial decisions most adults make. However, after reviewing this graph and considering the information in this post you might find there are some very compelling reasons to choose a mortgage payment over a rent payment.
The Census Bureau recently released their 3rd quarter median rent numbers.
Here is a graph showing rent increases from 1988 until today:
In addition to Rental deposits today being significantly lower than most down payments, rising rents have most leaning strongly in favor of buying vs. renting. If your personal financial situation is not the major factor swaying your decision, let me point out a few great reasons why you may want to sign a mortgage instead of a lease.
- Buying trumps (excuse the pun) renting in most every So California areas.
- Rising rental rates can be an unexpected hardship on your personal finances. However, once you lock an interest rate and sign a mortgage you can expect to pay a certain amount over the life of your loan.
- Today’s low-interest rates still offset the increasing home prices.
- Owning a home provides a really good tax break
- One of the biggest benefits of buying a home is the ability to build equity. As a matter of fact, home ownership is one of the best wealth builders.
As you can see on the chart above, rents have steadily increased and are showing no signs of slowing down. Are you still asking . . . Is Now a Good Time to Rent or Buy a Home? If you are faced with the decision of whether you should continue to lease or not, you might be pleasantly surprised at your ability to buy a home of your own instead.
Rents will continue to rise and mortgage interest rates are still at historic lows. Before you sign or renew your next lease, let’s meet! You might be pleasantly surprised at your ability to buy a home of your own and lock in your monthly housing expense.