Have you been a renter for years now? Wishing you owned property? If you’re on the fence about investing in real estate by buying a home this moving season, we can help you figure it out!
Switching from renting to owning can be a huge step, but if you are ready for it…why wait? If there is even an inch of doubt, you should always do your research first. There are many positives to buying a house, but at the same time, it can set you back financially and will be a change from renting. Purchasing and maintaining a home is a big responsibility; you won’t have a landlord to call and rely on.
Being a homeowner is an incredible accomplishment when the time is right. It comes with many joys and financial benefits. Read on for help figuring out whether you are ready to stop renting and start owning!
Renting vs. Buying: The Good and the Bad
To better understand the risks and benefits, here are the pros and cons of renting compared to buying.
- Renting gives you freedom and flexibility, whereas owning a home is an around-the-clock responsibility.
- With a mortgage, you have a fixed amount to pay every month; however, with renting, the landlord can increase the rent at any time.
- Renting is cheaper than owning the house and has very low or no maintenance cost, but you hardly ever get the neighborhood or landlord of your choice.
- Owning a house allows you to model your home how you like; rentals don’t have the same freedom.
- Rentals may be great, but owning a house means you have an asset that will give you a profitable ROI when you decide to sell your investment.
Reasons to Invest in Real Estate
Rising Rent
Inflation has hit everyone hard; over the last couple of years, the real estate market has seen a constant rise in rental prices. It is a challenging cost to meet. If you look at the rate of increase, you will see a significant rise.
Look at the average median rent rate in March 2020 before the pandemic; $1,682. Compared to that, the rate has been reported to have risen to $1,937 by March 2023.
The pandemic is largely to blame, but the increasing rates make rent hard to manage on a budget. It is your first sign that you are done renting and already seriously thinking about your own space. Financial stability is crucial and so is the feeling that you are ready for the freedom of moving from renting to buying.
You Have Saved Enough for the Down Payment
The golden rule of determining whether or not you’re ready to buy is financial stability; once you have that, your next goal should be to become a homeowner. Once you decide you have enough for the down payment, you can move to the exciting steps of house hunting, visiting open houses, and real estate market research.
The biggest hurdle that stops first-time buyers from ever getting a home of their own is the down payment. As first-time buyers don’t have funds from a previous home sale, they are stuck in the renting loop. However, the rest can be covered through loans if you manage the down payment.
A Favorable Mortgage Rate
When the time is right, and the mortgage is low, you pay less interest; this is how the real estate market works. And fortunately for first-time buyers, the mortgage rate is at its all-time low, which makes it the perfect time to buy your first home. The average rate is 6.03% for the 15-year fixed-rate loan. It’s 0.07 percentage points lower than last, which is great news for first-time buyers.
You are Financially Stable
When buying a house, a lot depends on your financial stability. A secure job, a consistent flow of income, as well as a debt-free life, should be your topmost signs to stop renting. A stable job and healthy income flow ensure that your mortgage payments will go on time and you won’t default on your loan; this is the strongest indication to go from renting to buying.
Income stability also helps maintain the house. Pipes will burst, air conditioners will need repairs, and there will always be one thing or another, but there won’t be a landlord to fix it on one phone call.
A Good Credit Score
Buying a home for the first time without a loan isn’t possible, unless you strike gold or win the lottery. So, having a good credit score is inevitable. A good credit score ensures you will get a home loan without any hassle; of course, other factors are also at play, but the most crucial is your good credit score.
You need a credit score of 690 to 700 to secure a decent loan with the lowest interest rate for your home. If you still need to give this a thought, we strongly urge you to take a look at your credit score and make amends if it’s low.
You are Ready to Take Charge
Lastly, you are ready to move out and live your best life. You are done with being trapped at a rental and are prepared to become the owner. You have weighed all the risks, pros, cons, and benefits of buying a home trump.
You want to choose your neighborhood, decide how to decorate the house without the landlord breathing down your neck, and you want the authority of owning a home. If so, you are ready to invest in your dream home. But you don’t have to do it alone! Read what a client had to say about working with 23 Legal.
“I would like to thank Ben Weaver and the entire team at 23 Legal, LLC for their help throughout the process of purchasing a home. Ben’s knowledge and guidance were evident throughout the entire process, and his timely replies and willingness to go above and beyond to ensure that everything was taken care of are truly appreciated. I highly recommend their services to anyone looking for a reliable, professional, and knowledgeable lawyer.” – Client Testimonial
Start Your Homeownership Journey with 23 Legal
At 23 Legal, we offer the best tips through our expert real estate attorney, Ben Weaver. We can help you understand the workings of house hunting, first-time home buying, and crucial information regarding the real estate market and investments. Ask us any questions you have! Once you’ve determined you’re ready to be a homeowner, the fun part starts.
We highly recommend partnering with an experienced real estate attorney to discuss your options. Trustworthy professionals like Ben Weaver can assist you in finding the best way to stop renting and start buying. It’s important to understand real estate law in Illinois and have the right team on your side to tackle every hurdle that may come your way. Let’s get started on your goals and make the dream of buying your first home a reality!
Ready to make the switch from renting to owning?
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
