Did you hear the news? Across major cities in the United States, rent has increased yet again, according to a new report from RentCafe.
The annual report found that the average rent in the U.S. has increased by 3.2 percent year over year and by 2.6 percent since the beginning of 2019. As of June, the average rent is now at $1,465. In some major cities, this number is much higher. Manhattan has the highest national average rent at $4,190, and San Francisco follows closely with an average of $3,697.
This increasing trend gives even more motivation to renters to make the leap from "tenant" to "homeowner." In addition to housing affordability, here are five other reasons to own.
- Make it your own: When you own your home, you can personalize your space to your own tastes without having to get permission from your landlord. You can knock down walls, add rooms, and paint to your heart's content without fear of giving up your security deposit later on.
- Peace of mind: While a lease can provide temporary peace of mind, it's just that; temporary. You can never fully guarantee that your landlord won't sell your home or end your lease, which can be unsettling.
- Tax time perks: One of the biggest benefits of homeownership is being able to take tax deductions for eligible expenses, including mortgage interest payments. This can add up to a big refund and a significant amount of money back in your pocket during tax time.
- Predictable payments: If you secure a fixed-rate mortgage, you will always know how much to budget for housing each month and your mortgage amount won't change. This is in contrast to rent payments, which can be unpredictable and frequently increase in steady intervals every time your lease comes to an end. The principal and interest portion will remain fixed, the taxes and insurance may change.
- Investment in furniture: Spending less money on furniture is often an unexpected benefit of owning versus renting. When you rent, you tend to move more, which often leads to a need to purchase more furniture to fit your space. When you've committed to owning a home for the long haul, you know you just have one space to buy for.
These are just a few reasons why owning a home can be a better investment than renting. We would love to share more with you and talk with you about how we can help you reach your financial goals. Contact us today to talk to someone from our team!