When deciding whether to rent or buy, one of the biggest considerations is building equity.
Here are some key points to keep in mind:
- No one can reliably time the market. While you might buy at a peak, market dips are often temporary. Real estate trends are best measured over many years, especially since most homeowners stay in their homes about 13 years on average.
- Homes aren’t guaranteed to increase dramatically in value. At worst, home values may stay flat or rise slowly over time. Long-term losses are rare.
- Whether renting or owning, you’ll have monthly housing costs. Rent or mortgage payments don’t go away.
- Mortgages come with interest, and homeownership requires maintenance and repair expenses. But once the mortgage is paid off, you own your home and have built equity. Renters don’t gain equity no matter how long they rent.
- Rents generally increase over time. Most landlords don’t offer long-term leases with fixed rates. Renters also move more frequently, and moving is costly. Even modest annual rent increases add up significantly over decades.
So rather than questioning the wealth created by homeownership, it’s better to think about the equity you build over time. I’d much rather have something to show for my housing payments than simply paying (rising) rent.
If you’d like to explore how buying a home could work for you, I’m here to help. Reach out to Amie Pisano today.
📧 Email: [email protected]
📞 Phone: 914-715-2632
