Couple outside home for rent

Renting or Buying a Home: Why Should You Choose the Latter?

Buying property in Florida is a significant investment. Even high-earning individuals choose to rent a home instead of buying one. Despite that, owning a property is still an ideal option for its huge benefits later on. For one, the value of your property could be higher than what you paid for it when you decide to sell it in the future.

It’s best to start saving early, so you can afford a down payment. You may also work with a mortgage company in Naples or in other Florida cities, to help you pay for your first home.

Homebuyers Feel More Satisfied

According to the Bank of America’s Homebuyer Insights Report, Americans prefer paying a mortgage than paying monthly rent. According to the report, 93 percent of people feel happier after buying a home, and 83 percent who bought a home wouldn’t rent again. Homeowners develop an emotional attachment to their property.

Homeownership is a smart financial decision, as well. It allows you to build wealth, which you can use to buy other properties in the future. You may keep your home for a certain period, and when its value has increased, put it back on the market.

Additionally, owning a home helps you live rent- or mortgage-free in the future. Once you have paid off your mortgage, your expenses may decrease significantly. You only have to pay for insurance and property taxes that are lower than the costs of renting.

Average Home Prices in the US

The cost of property varies from state to state. One thing is the same, though; buying a home has become more expensive than in the 1960s. At this time, the median price of a home was below $100,000 in today’s dollars. The current median home price is almost $226,800.

Location is a major factor that affects the cost of a property. According to a Business Insider report, Hawaii has the highest median listing price at $635,000. States like Washington, D.C. ($599,000), California ($549,900), Massachusetts ($479,000), and Colorado ($429,800) are in the top five where home prices are high.

Southern and Midwestern states, including Ohio ($179,900), Iowa ($180,000), and Mississippi (188,900) are among the areas with more affordable homes.

Buying a Home for the First Time

For sale sign outside house

Buying a home is a tedious process. It’s essential to invest time in research to help you make the process run smoothly and guide you in finding the right home that fits your needs and your budget. Since purchasing a property is no small expense, make sure you’re financially capable of handling this major investment.

Check your monthly expenses and see if you have sufficient money to allocate for your mortgage. Consider also how moving would affect your transportation costs to work when you look at neighborhoods.

Once you decided on how much you can afford, meet with lenders or mortgage broker. They will help you assess your credit score and the amount you can loan. Your agent will discuss your assets, debt, and any local programs you can use as down payment assistance.

The Department of Housing and Urban Development (HUD) has different federal programs that may help you purchase a home. In case you qualify for assistance, you may benefit from programs like:

  • Federal Housing Administration (FHA) for First-Time Homebuyers
  • Homeownership Vouchers
  • Indian Home Loan Guarantee Program

Find a real estate agent when you have defined your budget. Choose one who works with a team of home inspectors, insurance agents, and other professionals you may need for your new home.

Home buying and renting have their advantages and disadvantages. Homeownership, however, offers more long-term benefits than the other option. Start saving as early as possible, so you can afford to purchase a home while you’re young and enjoy its benefits. And live mortgage-free when you grow older.