Millennials now make up the greatest percentage of home buyers out of all generations! If that’s you, we realize that if you’re shopping for a home, it could be your first home-buying experience. Since your home is likely your life’s greatest investment, we want to offer our expertise to help you navigate the process. If you’re undecided about buying rather than renting, we’ve got three reasons that will convince you to buy!
Here are 3 benefits of buying a home rather than renting one:
1. Invest your money.
When you own a home your mortgage payment is really an investment into your future because you’re putting your money into something that can potentially increase in value over time. If you were to purchase a starter home now rather than rent an apartment, you could build equity rather than throwing money out that you will no longer see again. With the right real estate advisor, you can make a move that will position you for a better future. Our agents are knowledgeable about our local market and will know which areas of town are best for investing. Besides the equity building (acting as your automatic savings plan) owning a home will give you a tax credit, AND making mortgage payments will build your credit.
2. Pay off your student loans.
A mortgage payment, even after insurance and other costs, is typically substantially less than renting an apartment or even a rental home. The Huffington Post recently published an article (find it here) that features a map to show you where it’s best to buy versus rent in the United States, and yes Baton Rouge landed in the buy category. Their research found that the average rent cost for a 3 bedroom apartment is over $1,200, and if you’ve looked recently that estimate is on the conservative side! Based on recent research findings, you will actually save money every month by owning a home! If you have student loans that you want to tackle, this is a great strategy to becoming debt free. Live in a more affordable home (that’s building equity, remember), and designate more money towards your student loan every month. Buying a home is the more sensible option to set you up for a better, debt-free future!
3. Indulge your wanderlust.
We know that millennials are wired for adventure and travel. If traveling is high in your priorities, owning a home will enable you to do more of what you love. Saving more money on home expenses means more room in your budget to be spontaneous. Wouldn’t you much rather spend more money on plane tickets and Airbnb than rent? Owning a home can give you the life you really want to live. Home ownership and “adulting” can be fun when it allows you to live the life you want.
First time home buyers get benefits.
Buying a home is, of course, a huge investment! It’s probably your greatest investment and a little bit scary. But the good news is, first time home buyers can get serious benefits that will make buying even more appealing. If you’ve never owned a home before, you may qualify for a loan without putting a down payment. Talk to a real estate advisor about this.
Plan to stay for at least 4 years.
Here’s the deal. To truly benefit from home ownership, you need to be in the home for 4 years or longer because the typical break-even point is 3 years. If you plan to stay in a home for 3 years or less it’s cheaper to rent, but if you will be staying in a home for 4 years or longer, buying is cheaper than renting. Consider this commitment when you’re deciding to buy a home. Let us be your guide. Talk to an Engel & Völkers real estate advisor about your financial goals and plans for home ownership. Our agents know the best places for investment in our city and will be able to guide you through the entire processes. You can reach us by phone at 225-218-0888.