Leave a Message

Thank you for your message. We will be in touch with you shortly.

Is It Really Better To Rent Than To Own a Home Right Now?

March 6, 2023

Buyer

Is It Really Better To Rent Than To Own a Home Right Now?

Is It Really Better To Rent Than To Own a Home Right Now?

You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.  

A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):

So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.

Bottom Line

If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.


Real Estate Investing

10 Proven Strategies to Maximize ROI on Your Investment Property

Brian Ng  |  October 14, 2024

10 Proven Strategies to Maximize ROI on Your Investment Property

Seller's Real Estate Tips

Navigating Zoning Restrictions & Planning Permissions: Essential Insights for Real Estate Success

Brian Ng  |  October 9, 2024

Navigating Zoning Restrictions & Planning Permissions: Essential Insights for Real Estate Success

Seller

How to Avoid the Trap of Properties Stuck on the Market Too Long: Strategies for Sellers

Thao Dang Pham  |  October 9, 2024

How to Avoid the Trap of Properties Stuck on the Market Too Long: Strategies for Sellers

Real Estate Investing

How to Gain Equity Quickly in Real Estate: 7 Proven Strategies for Rapid Growth

Thao Dang Pham  |  September 27, 2024

How to Gain Equity Quickly in Real Estate: 7 Proven Strategies for Rapid Growth

Seller

Proven Strategies to Attract High-Value Buyers to Your Property Fast

Thao Dang Pham  |  October 7, 2024

Proven Strategies to Attract High-Value Buyers to Your Property Fast

Seller's Real Estate Tips

Are You Struggling to Find Qualified, Serious Buyers?

Brian Ng  |  October 4, 2024

Are You Struggling to Find Qualified, Serious Buyers?
FOLLOW US ON INSTAGRAM