Home Ownership vs. Renting


There has never been a better time to be a homeowner than right now. Most Americans dream of owning a home. Having a home allows you to have your own backyard, a garage to park your car, plant flowers in your own flowerbed, and build equity on a monthly basis. For anyone questioning whether they should buy a home or continue to rent, let me share some facts as to why homeownership is a better option.

Interest rates are at an all-time low. What happens when things are at its lowest point? They go up. Interest rates are factored in to how much your monthly mortgage payment will be. Right now being able to get an interest rate in the 4% range is a gift. It is up to the diligent buyer to take advantage of this gift. Every month someone waits to take the first step, that person runs the risk of rates increasing which will result in an increased monthly payment.

Rental rates are on the rise. Apartments are springing up on every corner of every street in the country. And these apartments are almost at full capacity before they finish construction. With this demand at an all-time high, owners are increasing rental rates at an unprecedented rate. When comparing a monthly rental payment with a monthly mortgage payment, the monthly mortgage payment is usually lower.

First time home buyers have more options for financing. With many zero down programs, first time home buyers can get into homeownership with less money than moving into a new apartment. When you factor in a deposit, pet deposit, parking fees, rental insurance, first and last month’s rent, moving into a home with no money down only makes sense. There are also programs that require as little as 3.5% down. This is a small price to pay for an investment that will pay off huge only a few years down the road.

Homeownership has never been more attainable or affordable than right now. Interest and rental rates will only increase over the next several years and financing options continually change. Investing in homeownership is investing in yourself. Every time you make a mortgage payment you are investing money you will capture when you sell your home. What happens when your lease runs out? Hopefully, you will be one of the wise homeowners that will not have to find out.

Brian Batten, V.P. Sales Houston Region
LGI Homes