Here’s why buying beats renting every time
In real estate, the debate has traditionally centered around whether buying or renting provides more value to the consumer. With rent prices remaining high across Rhode Island and most of the country, J.Christopher Real Estate Group can assure prospective buyers that buying a home holds significant advantages over renting in today’s day and age.
“Critics of buying real estate say that buyers will pay more because of all of the added costs of homeownership like taxes or water service, and they’ll usually fail to mention the equity buyers will build,” said Jarrod C. Lewis, owner of J.Christopher Real Estate Group.
The National Association of Realtors recently conducted a survey that found the primary reason non-homeowners do not own a home is because they cannot afford to buy one. The same survey found that the majority of renters would like to be a homeowner because they believe it is part of their American Dream.
“Many first-time homebuyers aren’t well versed in acquiring mortgages and may not know that they have different options when it comes to making a down payment on a home,” said Lewis. Furthermore, he says that renters in Rhode Island are paying an average rent that is beginning to mirror the costs associated with buying a home in the Ocean State at the median price of $265,000.
Here are some reasons why buying is more affordable, and more advantageous than renting.
- Homeowners have the flexibility of remodeling their home and the associated costs are tax deductible.
- As payments are made on the mortgage loan, homeowners usually build equity and recoup their down payment costs in a few years.
- Buying a multi-family property allows homeowners to gain additional income that could be used towards paying the mortgage.
- Several programs are available that can reduce your down payment or cap the payment to $7,500 if you are buying a home in certain areas.
To help you get started on achieving your American Dream, J.Christopher Real Estate Group encourages you see our current listings. For all other real estate questions or concerns, speak with one of our realtors by calling 401-830-6906.