Taking the leap into homeownership — whether you’re considering a home for sale in Austin, TX, or Tampa, FL — can be daunting when you’re used to renting. From house hunting to making an offer to gathering pertinent paperwork, it’s a much more complex process than signing a lease agreement.
But while easier financial approval and less responsibility make renting attractive, the numbers suggest becoming a homeowner could be better for your overall financial picture. According to the latest Trulia Rent vs. Buy report, with low interest rates combating rising home prices, buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.
“Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account,” says Ralph McLaughlin, Trulia’s Chief Economist. “Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on house. That said, potential homeowners should go into homeownership with the expectation that wealth generation will be more akin to a marathon than a sprint.”
So although renting may be easier on your wallet right now, over time, it can’t stack up to the long-term financial benefits of buying a home. Here are just a few reasons homeownership — and the financial security it offers — may be right for you.