Why Renting Doesn’t Make Sense in 2022 | Mortgage Lenders Dallas

In the past year, we saw drastic changes in the real estate industry. Most importantly, we saw a massive increase in renting prices as well, and experts state that rents will most likely go up in the upcoming years too.

Yes, we know- purchasing a house can be quite overwhelming if we talk about other costs (apart from the price of the house) we will have to consider. However, apart from the predicted increase in the cost of renting, there are several other reasons why you should definitely consider purchasing a property instead of renting, according to Dallas mortgage lenders.

Benefits of Investing in Your Own House

Build your wealth

Purchasing a home is one of the wisest financial decisions you can ever make for yourself. If we fast forward to several years, you can sell your property with a reasonable profit due to its increased value. 

In fact, you can even purchase more properties by the profit you have earned from your current home, which you could never have otherwise.

Generate your passive income

Remember- you aren’t purchasing a new home for yourself for now. Rather, it is a long-time commitment.

You can choose to rent out your entire home in order to earn some passive income or continue living in your home while renting out portions too. This way, you won’t really feel the need to relocate, and will still be able to earn money to build your income. 

In addition to this, you can easily cover your mortgage with this earned income, pay insurance or other taxes, and so on. This, however, can’t be possible when you’re renting a place.

Increase your net worth

Here’s a fact- you cannot increase your net worth just by renting. Especially if you plan to live in your purchased home for a long time, you will not only be able to increase your net worth, but you will also build yourself a valuable asset, and reap other financial benefits as well.

Low living expenses

Lowing your living expenses is something you will never be able to do when renting a home. Apart from the obvious costs of purchasing a home, such as taxes, insurance, and utility, these costs are still minimal as compared to renting. 

Build your own dream home

By purchasing your own home, you can style and design it as you wish.

Ever wanted your dream kitchen, living room, or backyard? Well, by purchasing a home, you can absolutely design it as you wish and do anything you want with it. From your desired floors, wall colors, and windows, which could not be possible if you’re living in a rented-out space.

Free from unforeseen rent hikes

Drastic increases in rent prices aren’t uncommon. In the year 2021, we saw an increase in the cost of rent, which was higher than in the previous two years. And, this trend is likely to continue in the future.

According to a report by Redfin, the cost of rent in the USA increased by an average of 14% in December 2021, which was by far the largest increase in more than two years.

With these trends in mind, it would be wise to own a property and increase your profits.