Should you even really buy a house in 2023?
The market seems like it’s totally crazy and interest rates are bananas. Even in this high-interest rate environment, there are some really good reasons why buying a home still may be a better option than renting.
Probably the biggest one is that owning a home really is kind of an inflation buster. So what does that mean? Well, if you notice, if you rent or you’re looking at rentals, you probably see that rentals continuously go up almost every year, rents are going up in almost every area. So if you’re renting, you are hoping that you’re going to continue making more to get maybe a nicer place a bigger place, whatever, or to just stay in the place you are, that’s going to continually get more expensive. When you buy even with interest rates being a little higher, you are locking in that payment for usually a 30-year term, a 15-year, 20-year, or 30-year term, you kind of can’t beat that if your payment is say $2,000. Today, it’s still going to be $2,000 in 20 years. Whereas if you rent something that maybe costs $1,500 today if you stayed in that same place, I couldn’t even begin to tell you what you’re going to be paying in 15 or 20 years.
Now, that’s not to say that there aren’t some extra expenses and things that come along with owning a home. So over time, you do gain appreciation, which is a really great investment when you’re living there anyway because you’re always going to pay to live somewhere. And the benefit of sort of stockpiling that money for yourself rather than paying someone else’s mortgage, as you often hear it referred to in a rental. There’s a value in there not just monetary, but a pride of ownership.
Additionally, sometimes your landlord may not be really keen on you painting the kitchen cabinets, a mural in the kid’s rooms, making some renovations to the bathroom, that sort of thing. And when you own your home, you really can customize it to just what you want it to be.
There are also tax benefits that come with owning a home as opposed to renting. But always consult a tax professional when you’re thinking or talking about any sort of tax-related things because I am not one. And remember, even though interest rates are higher right now if you can afford the payment right now, you are pretty, I’m not going to say guaranteed but almost guaranteed, that at some point rates will tick down and your payment is likely to become less rather than more (if you refinance). Whereas with renting it is 100% guaranteed to go up over time.
So if you’re thinking maybe I would be interested in buying a home, I’d love to talk to you and help you walk through all of the steps. Look at all the information and see if it is the right choice for you right now. Or maybe it’s something you want to do in the next six months to a year. I’d love to talk to you give me a call. Reach out via email and let’s set up a time to chat to see if it is the right decision for you.