Often times, people decide to rent a property rather than buy because they think they can’t afford to do so. However, with the current state of the market, renters need to realize that maybe they can’t afford NOT to go forth with buying something.
The cost of rent across the nation has grown steadily for nearly a decade, and not only is it expensive, but throwing away money each month does nothing for your long-term wealth. So, how does renting affect you now and also down the line? Here are four reasons you’re missing out by waiting to buy something…
1. You’re Not Building Any Equity by Renting
As many people often say, renting is essentially throwing your money away each month. All you’re doing is helping your landlord pay their mortgage. You’re not getting any of the money you’re spending back. Instead, it’s smarter to buy something that you can build equity in.
2. You’re Missing Out On Historically Low Interest Rates
Mortgage rates are currently the lowest they’ve been in almost three years, and who knows how long that will realistically last for. Therefore, you need to take full advantage now! Even if you just wait a few months, rates could rise again, which would mean a much higher interest rate and monthly mortgage payment. In the end, it could end up costing you thousands, so why wait?
3. If You Wait, You Could End Up Paying More for a Home
Home price growth has slowed down, but just like the current low rates, you can’t expect all good things to last forever. Most experts have predicted that this trend won’t last long, and that home prices should be set to rise as the year goes on. So again, waiting could end up costing you in the long run.
4. You Could Miss Out on Preparing for your Future
Purchasing and owning real estate is such a key component to a solid retirement strategy. It allows you to build equity and also gives you leverage if you need cash for any kind of emergency situation. If you’re a renter, you don’t set yourself up with the same kind of financial safety.