The process of moving into homeownership from prior rental situations is an important one, and not just because you'll get to stop paying rent every month. There are several different financial and other benefits associated with owning a home rather than renting, and given how low interest rates are on the market right now, there's no better time to consider making this move.
When you work with The Albright Team, we'll position you for a quality purchase on any home, condo or townhome for sale in Las Vegas -- and our realtors have helped numerous clients realize the immense potential benefits of owning a home rather than continuing a cycle of paying rent. In this two-part blog series, we'll go over several reasons you might be considering moving from renting into homeownership.
The simplest reason for owning a home over renting is very basic: Instead of paying monthly living costs to someone else and enriching their bank account, you're putting that money into your own long-term investment. A home you own will continue to appreciate in value over time, and that value – combined with the savings you accumulate on monthly costs – will increase your financial stability as soon as you move in.
Renters can't hold onto their savings until later; landlords expect full payment at the first of every month, no matter what. With a home you own, however, this is not the case.
Rent is Going Up Fast
Moreover, as longtime renters are well aware, the costs of rent in many markets are skyrocketing. There are numerous rent-related horror stories these days, especially in high-demand markets like New York City, Los Angeles and San Francisco.
Owning a home is an effective way to protect yourself against this trend; as long as you're not overspending on your monthly payment relative to your income (and if you hire us to work with you, we'll make sure this doesn't happen), the value of your home will continue to rise -- and if you have a fixed-rate mortgage like many first-time buyers do, your monthly payment will stay the same.
Interest Rates Are Very Low
One current circumstance that makes owning a home even more attractive and potentially attainable is the fact that interest rates are still really low; in fact, they're at their lowest point since the 1950s. What this means for prospective homebuyers is that you'll be able to snag a great deal on your mortgage (we can help you do this) and therefore spend less money on payments each month.
Down Payment Assistance
For some, the primary barrier in moving from renting to homeownership is the down payment, and their assumption that they must have 20% of the home's value saved to put down. But especially for many first-time buyers, this isn't a strict requirement -- there are many loan programs or forms of down payment assistance that can be used, from grants from various government agencies to loans from private organizations.
In certain cases, these down payment options can even mean a home is completely free -- your mortgage payments will cover the full purchase price of the house each month. This is an incredible way to move into homeownership with no upfront costs and low monthly payments, making it easier for those who don't have large sums in savings to make this move.
For more on why owning a home is far preferable to renting in several financial ways, or to learn about any of our homes or condos for sale, speak to The Albright Team today.
Kelly Albright is Broker/Owner of Vision Realty Group and has been in Real Estate for 17 years. She has closed over 700 homes in Las Vegas, North Las Vegas, and Henderson.