The dream of homeownership runs deep in our culture, but after the Great Recession, many people are afraid of finding out it will be a nightmare.
If you’re renting at $1,200 Vs. buying at $175,000
If you’re renting at $2,000 Vs. buying at $175,000
As you can see from the examples above, owning a home can be an amazingly affordable option when compared to NJ’s high local rents and those regular rent increases that are inevitable in a strong rental market. In a ten year period, you can keep the costs of your homeownership relatively level while building an enormous amount of equity in your home. Imagine using those monthly payments to invest in your own future rather than your landlord’s! A house might not make you the same money over time that stocks would, but it is a solid place to park money that you have to spend to keep a roof over your head regardless of whether you’re an owner or a renter.
There are factors that can make renting favorable. If you’re not staying put long enough to build equity or value in your home, the closing costs involved in buying or selling your home might not be worth it at all. Additionally, renting in a declining real estate market can be a wise choice. In NJ we’re fortunate to be growing and thriving, but if that weren’t the case I’d certainly advise against buying before the market stabilized.
If you’d like to talk about whether you’re ready to buy, please give me a call! I’m happy to offer advice on how to get started on your house hunt! I’ve helped so many first time buyers realize their dream of homeownership over the years, and it never fails to make my day!
Jacqueline Scura | RE/MAX First Choice Realtors | 1160 Route 46 West, Parsippany, NJ