5 Signs It’s Time to Stop Renting and Start Buying Real Estate

There comes a time in many people’s lives when they debate renting vs. buying property. For some, the decision is made because rent prices go up. Others might decide to purchase real estate so they can live in their desired city or school district. Whatever the reason, there are many advantages to buying property rather than renting. Continue reading below to discover five signs that it’s time to stop renting, plus some of the benefits of buying.

Benefits of Buying Property

There are immense advantages to having your own property instead of renting. Some are obvious, like choosing the paint color and making changes to the house; others are less apparent on the surface, like advantages to your pocketbook.

Here are just a few of the many advantages you can enjoy when you buy a property instead of renting:

You can build equity and increase your home’s value over time.
You can improve your credit score as you maintain regular mortgage payments.
You can create stability for your family and pass the house to children eventually.
You can enjoy greater privacy than you would with renting.
You can have more control over your living space and customize it how you want.

These are some of the best benefits to buying property, not to mention the money you could save on high rent costs that go nowhere. With a home and a mortgage, your monthly payments help build equity, which can create a more secure future for you and your family.

Disadvantages of Renting

For some, buying might come as a natural next step simply because they’re sick of renting. There can be a lot of cons when it comes to renting property vs. paying for your mortgage each month. Besides crabby landlords and no room for customization, the financial disadvantages often drive renters to become buyers.

Here are a few more reasons why renting might not be the best option:

You can’t control when or if rent increases.
You don’t receive any tax benefits.
You aren’t building equity.
You have to follow any rules laid out by your lease.
You don’t have the freedom to make changes or updates to the space.
You can be kicked out at any time.
You might not be allowed to have pets.

Though many people might prefer to rent, it can have a lot of disadvantages. Some are financial, and some are related to the freedom to live how you want by customizing your space, getting a pet, and more. If these renting cons are getting in the way of your lifestyle, it might be time to buy.

5 Signs It’s Time to Buy

It might be obvious that it’s time to buy if you notice any of the following signs. They are usually sure bets that you should stop renting and start paying a mortgage on your own property instead. Of course, you will need a steady income and a down payment to purchase a property. Once you have those, why not consider buying? Explore the most common signs it’s time to buy below.

Fair Market Value

Fair market value is often a different value than the appraised price since it takes into account other factors. Simply put, fair market value is what potential buyers are willing to pay to buy a home in Plymouth. It will consider elements like:

Supply and demand
Similar sales nearby
Property size
Location
Neighborhood
House condition

Weighing these different components, your house may be worth more when the market is hot, and homes are selling quickly in your neighborhood. Fair market value will shift depending on these factors and more.

1. Your Rent Payments Keep Going Up

One of the many disadvantages of renting is that you can’t control how much the property costs. Your landlord can raise the rent when they want to, without justification. You might really like your home or apartment and want to resign it for another year, then realize you can no longer afford it.

In some real estate markets, it can be cheaper to buy a home than to rent, because the average monthly mortgage cost is cheaper than the average rent cost. Another advantage of purchasing a home is that your mortgage stays consistent, and you will be putting equity into your most significant asset.

2. You Want to Customize Your Space

Many renters become sick of their space and the inability to make cosmetic or even structural changes. Most landlords don’t allow renters to change their property and might not even be willing to update outdated appliances or countertops. If you want to live in a place that you can customize, it’s time to buy. Even simply changing your curb appeal and landscaping is appealing to many who decide to become homeowners.

Once you own your own home, you can make any substantial property changes that you want. Even if the landlord does allow it, most renters are much less likely to remodel a property they’re renting because they don’t own it and won’t reap the financial benefits of the update.

3. You Have the Down Payment

One of the biggest pushes to buy can come when you finally have enough money for a down payment. Many financial experts advise buyers not to be afraid to part with their down payment. Some are hesitant to buy until they find their dream home, which might never come around. It’s best to stay on budget and purchase your first home with the down payment you’ve saved and can afford. Anything above that might put you in risky financial waters.

4. You Notice That Mortgage Rates Are Low

You’ve probably heard people say, “Buy when interest rates are low!” For first-time buyers, low mortgage rates can make all the difference when deciding to buy a home. Low mortgage rates will lower the amount of money you’ll have to pay to borrow the mortgage. Plus, they will give a boost to your buying power since a smaller amount of your monthly payment will go towards interest. This all equates to better purchasing power for home buyers, so you can afford more than you might otherwise be able to.

5. You Want a Specific City or School District

The drive to buy can often come from the desire to live in a specific neighborhood or school district. If you have kids nearing school age, it might be time to consider purchasing and putting down roots in the school district you want. Buying a house in the city you want will ensure your future and your children’s, offering stability for years to come.

Moving can be tough with children involved, so why not buy now and not have to worry about it? Whether you’d prefer a house in one of Minneapolis’s historic districts, or you’d like to settle in a suburb outside the city, there’s sure to be a property fit for your family.

Want to Stop Renting?

If these signs to stop renting resonate with you, contact us today. One of Kerby and Cristina’s experienced agents can help you find the perfect house for you and your family. Fill out our home buyer questionnaire to get started on the home buying process and be paired with one of our friendly agents.

If you want to purchase a home this year, let’s connect to start the conversation and explore your options.

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