Welcome back to Home Buying 101 – Throughout this series I will be detailing the various parts of the transaction process for purchasing a single family home. My goal is to answer the many questions looming around purchasing, especially for first-time home buyers. If you are just beginning, I recommend starting with Part One: Understanding Equity.
In 2015, 32% of all home buyers were first-time buyers, with a median income of $69,400. According to Zillow, 47% of all purchasers were first-time home buyers in 2016, which is a significant increase. Why did so many decide to take the plunge? Let’s start by looking at the differences between renting and buying below.
As you can see from above, there are more pros to buying than there are cons, as well as more pros for buying than there are for renting.
The biggest point I want to highlight is the difference in equity. When you put down money for a deposit on a rental and pay your monthly dues, it is not an investment. There is zero return and in no way can you leverage that money down the road. Also, when you move out, you do not normally get back the full amount of money you gave as a deposit.
Alternatively, the initial investment in buying a home is the down payment, which immediately gives you equity in the property; money that can be used should you want to make repairs or upgrade finishes in the future. Plus, when you sell your house it is usually a safe bet that your house will have appreciated. Which means that you will get back more than the initial amount you invested. So you’ll be making money for doing the exact same thing!
Take a look at what's next in Part Three: Meet with a REALTOR®. Also, please leave any comments or questions below!
Katie Langthorn | Real Estate Agent, REALTOR®
C: 281.850.7743 | O: 979.703.1979 | F: 979.703.1980
3091 University Dr. E. #230 | Bryan, Texas 77802
Your Source for Bryan/College Station Real Estate