Is It Really Better To Rent Than To Own a Home Right Now?
You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.
A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.
But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:
“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”
The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):
So, before you renew your rental agreement, understand that homeowners in San Diego enjoyed an equity gain of 44.29% which translated to an increase of over $230,000.00 to their networth on average…That’s a bunch of money!
Bottom Line
If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.
If you decide to sell with a realtor, please know I am here to guide you through this ever changing market. Don’t let just anyone help you sell your most valuable asset!
Your questions, answered
What rights do tenants have?
Tenants have the right to a safe, habitable home, privacy, and freedom from discrimination.
What are tenants responsible for?
Paying rent on time, following lease terms, keeping the property clean, and reporting maintenance issues.
Can landlords enter without permission?
In most cases, landlords must give reasonable notice (often 24 hours) unless it’s an emergency.
Who handles repairs?
Landlords handle major repairs, but tenants must report issues promptly and handle basic upkeep.
