The age-old question of “Do I rent or do I buy?” is something that every person considers when thinking about their future living situation. After some research and thought, Akers Ellis agents agree that owning is a smarter option for residents of the Charleston area. They state that there are 4 factors to consider: home appreciation, money savings, perks of homeownership, and interest rates.
HOME APPRECIATION
Real estate agent Paul Charles, points out that buying is the better option due to the fact that home appreciation is on the rise. Over the next five years, home prices are expected to appreciate an average of 17.3%, according to Pulsenomics U.S. Home Price Expectations Graph. Based on this statistic, homeowner’s equity will skyrocket, creating a larger overall net worth.
MONEY SAVINGS
Lynn Lloyd‘s, www.realtor.com-based blog post says, “Owning a home is a key reason why the median net worth of a homeowner is almost $200,000 while the median net worth of a renting household is just over $5,000. Sure, part of that is because owners are able to pony up a chunk of money to put down on a house and to qualify for a mortgage. But the act of paying for a mortgage actually helps produce more wealth, by freezing payment amounts and building equity through forced savings.”
Brian Sullivan, another real estate professional, shares his own personal success story stating, “With the high rents in Charleston, it makes sense to consider buying. I went from renting an apartment to buying a comparable condo last summer and I’m saving money month to month. Especially if you are a veteran, you can use your well-deserved veterans benefits to buy with no down payment or closing costs.”
PERKS OF HOMEOWNERSHIP
While homeownership comes with responsibility, it also comes with freedom. A few perks of homeownership include not having to deal with landlords, designing your space to express yourself and your personal tastes, more privacy, planting roots, and establishing a sense of community with fellow neighbors.
INTEREST RATES
Kimber Smith, Broker-in-Charge, points out, “With interest rates at historic lows, it makes sense to buy now with either a 15-year or 30-year fixed mortgage, guaranteeing that your rates will not go up during the lifetime of the mortgage. The payments will probably be less than the cost to rent.”
Forbes Magazine agrees stating, “With a 20% down payment, a 30-year fixed mortgage rate at 3.5% and at the 25% federal tax bracket, homeownership is cheaper than renting in all of the 100 largest metros by a wide margin. There is no market where the financial decision is even close, so long as you plan to stay in the home for at least seven years, get 3.5% mortgage, and itemize your tax deductions.”
Kathleen DeWitt, Akers Ellis Agent of the Year for 2015 and 2016, adds, “Pertaining to the Charleston market, buying is now becoming much more affordable than renting. If a buyer is having trouble with tarnished credit or not enough credit history, they need to reach out to their lender or research how to clean or enhance their credit score. Interest rates are still low and, in order to capitalize on them, buyers should be doing everything they can to set themselves up to purchase sooner rather than later!”
Not only is homeownership something to be proud of, but it also is the best decision based on home appreciation, money savings, perks of homeownership, and low interest rates. If you are ready and willing to buy, please contact one of our knowledgeable real estate agents. They can advise and further educate you on why buying is the smarter option.