Here’s Why Buying A New Home Grows Your Wealth Faster Than Renting
I work with a lot of first time home buyers in Chandler, buying your first home is a big step. There can be many downsides to both renting and buying, depending on what side of the coin you are on, but if you’re leaning towards purchasing a home it can have added benefits for your bank account that renting does not. While renting can alleviate many of the costs that go along with owning, purchasing a home can have positive monetary affects in the long run. As a Chandler Realtor I make it my job to educate both buyers and sellers on the the consequences of the decision to buy and sell.
The Good Impacts of Inflation
While inflation is often seen as a dirty word, a real estate purchase can see the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month, but investing into a property will come back to you in future gains that are made in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future. In the past real estate has always been a hedge against inflation, because housing values rise with other goods. This is seldom a one to one correlation but does hold more often than not. I have sold homes in Chandler for over 13 years and witnessed the prices relative to inflation. In fact housing is one of the commodities used to measure inflation.
Renovations Will Increase Home Value
While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra lining to your wallet when you move out, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unsightly while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market.
The Opportunity For Rental Property
An apartment or home you rent won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. You can fix the property up to enjoy the amenities but they belong to the owner and bring you no monetary value. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Buying a home can require a lot of number crunching in the beginning that rent does not, but it can also provide significant financial benefits down the road that might not exist without such a purchase. If you’re considering purchasing a home in the near future, you may want to contact your local mortgage professional for a review of what would work best for your situation. There is no pat answer for the lease vs purchase decision, but one thing for sure is that real estate tends to increase over time vs decrease. If you are looking for a Chandler Realtor, please contact me I can give you some valuable information regarding the prices of Chandler homes for sale as well as do a cost needs analysis which will help you determine the best price point for your budget. My website has a map driven home search feature that you will enjoy using while searching the Chandler homes for sale. I look forward to hearing from you.