Renting vs. Buying: What are the benefits?
If you haven’t already heard, Tampa Bay has been ranked the #1 city for first-time homebuyers! As exciting as this is, many people get nervous about making the leap into homeownership and think that renting a property is their only option. Team Chais is here to give you the scoop on paying for rent vs. paying a mortgage, and all the factors you should consider before making your decision.
If you look at the graphic above you can immediately see that both buying and renting have their benefits as well as their flaws. As much as you may love the luxury of light responsibility and flexibility associated with renting, you could be losing money you can never get back. Or maybe you think you’re financially stuck renting forever, but one thing is certain, you have access to a plethora of mortgage lenders ready to sit down with you to discuss financing options and rates that work for you to purchase a home and start building equity.
In Florida the median rent price is $1,850, this means in one year you will have paid over $22,000 without gaining anything in the end. The median price of homes sold in Florida is $227,800, meaning if you put as much as 20% down, you would only be paying a little over $800 a month, AKA pocketing $1,000 AND building equity! But the beauty behind it all is that mortgage lenders offer down payment programs that assist everyone, from little to no payment down, so that you can stabilize your monthly payment comfortably. Since buying a home has the bigger potential long-term payoff, it is obvious why Florida saw a 33% first-time homebuyer market growth rate between 2014-2018. Renters are noticing that it’s better to have your monthly mortgage payment pay off than to pay someone else’s mortgage. Not only that, but the significant tax benefits of buying rather than renting may be reason enough to invest.
As nerve-racking as it may feel signing on the dotted line, factoring in that real estate values increase steadily over the years and that rents are likely to rise over time should bring a sigh of relief. Along with that, you get to completely customize your home (both the interior and exterior) to your liking, take advantage of low interest rates and experience the joy of belonging to the community around you! Team Chais is here to help you find the community right for you and the perfect house to call a forever home. So before you renew that lease, consider the benefits of homeownership, and how paying down a mortgage can increase your equity and build you wealth. Call us today 813-928-4308 to discuss real estate options that will work for you and start the search for your dream home.