Rent vs. Owning

There are many reasons why people choose to rent rather than own a home. Some renters simply like the idea of owning a temporary place as they are still unsure if they want to settle down while others want to avoid the many expenses of ownership.

 

However, the major downside of renting is that you’re giving money to your landlord every month – money that you’ll never get back.

 

In contrast, paying for a home mortgage each month may be costly, but it will slowly reduce your home loan balance. If everything goes well, you get to own the house, which is an incredibly valuable asset nowadays.

 

If you’re deciding if you should continue renting or if now would be the best time to start owning a house, then you’ve come to the right blog. With the way rent continues to increase each year, you might find the latter option better for you.

 

Rent Prices Continue to Increase

 

According to a report by Realtor.com, the official website of the National Association of Realtors, the median in the 50 biggest metros was $1,575. The data suggested that rents rose by 8.1% from the previous year, translating to an extra $118 to pay each month for renters.

Realtor.com also revealed that rents for all unit sizes are at an all-time high. Renting for a studio apartment increased by 4% while 1-bedroom and 2-bedroom apartments saw an 8% and 10.2% rise in rent, respectively.

 

Is Renting Still a Good Idea?

 

If you aren’t yet sure if you want to settle down, then continuing to rent might be a good idea until you can map out your future a bit more. Many people are still not sure whether they want to move out or stay due to the COVID-19 pandemic so that’s quite understandable.

 

However, for those who are interested in getting a place they can own, waiting for the lease to expire and looking for a house to buy could be the ideal move. In this way, you can start investing your money toward a valuable asset that will have your name in the title.

 

To help you decide if now would be a good time to buy a home, you should consider the following questions:

● Do I have the cash to make a down payment?

● Is my credit score acceptable enough to apply for a home loan?

● Do I have any debts and, if so, how much more can I afford?

It’s important to ask yourself these questions if purchasing a house. When you buy a home, you can save money in the long run that would otherwise be used for your rent.

 

Conclusion

 

The cost of renting an apartment or house continues to increase every year, which makes it more and more impractical to continue doing so. If you believe that now is the right time to own a house, then you should consider getting a mortgage.

 

At Welcome, we can help you get pre-approved for a mortgage so you can know right away if owning a home is right for you. Click here to learn more about how to take the first steps towards owning your home. And click here to apply for a mortgage today!

 

Please be advised that the Henderson branch will be closed on Tuesday, July 16, and Wednesday, July 17 and be open from 7:30 - noon on Thursday, July 18, and Friday, July 19.

 Exciting news: your enhanced e-statement will be delivered soon!  

Please be advised of our holiday hours for Independence Day: all WFCU branches will be closed on Thursday, July 4. 

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed on Monday, September 2 in observance of Labor Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed on Monday, October 14 in observance of Columbus Day. 

Now is the time to get the best returns on your cash with higher interest rates on your Certificate and Money Market accounts!

Welcome Federal Credit Union will be closed on Monday, November 11 in observance of Veterans Day.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

Welcome Federal Credit Union will be closed for the Thanksgiving Holiday on November 28 & 29, 2024.

Now is the time to get the best returns on your cash with higher interest rates on your Certificate & Money Market accounts!   

As we close out 2024 and think forward to 2025, WFCU would like to wish all of our members and their families a wonderful holiday season and a prosperous New Year! Please be advised of our holiday schedule.

Attention Members: Please be advised the Henderson Branch will be closing at 12:30 today, Friday, May 31st.

The owner of this website has made a commitment to accessibility and inclusion, please report any problems that you encounter using the contact form on this website. This site uses the WP ADA Compliance Check plugin to enhance accessibility.