While rent prices have steadily skyrocketed since 2005, average mortgage payments have actually decreased. In addition, mortgage interest rates are at a historic low—which makes now a great time to invest in local real estate.
Renting a home versus owning a home will always have staunch defenders on both sides. Each options has key advantages that make it attractive to a variety of different people. But, the truth is that owning a home is becoming less expensive than renting. Here’s why.
If You Can Afford to Rent, You Can Afford to Buy
Think of it like this: when you rent a home or an apartment, every month you pay your landlord a set sum. Your landlord then uses that money to pay off the mortgage of the property you live in.
While this money pays for your home, it doesn’t help you grow wealth. Owning a home, on the other hand, features a similar monthly payment—except that money benefits you directly. Paying off your mortgage, and therefore your home, helps you build a sort of forced savings account. This savings translates to your own personal wealth and net worth.
Plus, Average Monthly Rents are Sky High
Since 2018, the average rent throughout the country has increased by 36%. Monthly mortgage payments have decreased 4% over that same time period.
And, mortgage interest rates are historically low. In Maryland, the average mortgage rate is just 4.29%.
Low mortgage rates and monthly payments are great news for buyers: they’re signaling a moment of extreme affordability in the Maryland real estate market. Simply put, this is a great time to buy a home and begin investing in your own personal wealth.
Eager to Become a Homeowner? I Can Help
If you’re ready to begin growing your own wealth by buying a home in Crofton, please give me a call. Allow my team and I to leverage our years of experience in this market to deliver successful results.