Life is full of the unexpected, especially when it comes to finances, but maintaining financial stability is a crucial part of achieving your long-term goals. One way you can accomplish this is by buying a home, which can provide you with fixed housing costs that won’t fluctuate with the market.
How a Fluctuating Market Can Affect Your Budget
A primary advantage of buying a home is that it ensures more stable housing costs. Assuming you get a fixed-rate mortgage, you’ll have the same monthly payment, regardless of how the market changes over the years.
For renters, that’s not the case. Rent typically goes up each year, which provides no long-term stability for your monthly housing costs. In fact, rent continues to outpace inflation and increased an average of 3.6 percent in 2015 alone, according to Harvard University’s Joint Center for Housing Studies.
By buying a home, you can protect yourself from volatile rent increases, especially in an ever-changing housing market.
Is It Time to Say Goodbye to Renting?
Before you make your decision to buy, be sure to weigh out all the financial factors. Make sure it’s a smart financial move for you, both now and in the future. For a quick way to evaluate this, try this rent vs. buy calculator.
If it’s time to say goodbye to renting, give me a call today to discuss your next steps. I’ll walk you through the home-buying process and help you find a home financing option that fits your needs.