So you may be wondering what the better option is and weighing the option of Renting vs Buying in Las Vegas… Let alone the better option in general. Most agents, friends, family, people you ask will tell you “Buying is better” but they can’t tell you the real reasons why. Below I will go into detail and show you comparisons of why Owning is much more valuable than Renting, how it helps you in the long run and how it lets you have something to show for your hard earned money.
So you may be a renter and that may be the “easier” route (not really), but you may think so, and that’s okay, but if you are here you are probably looking into buying a home soon. You may not have had anyone explain to you how renting is a less attractive approach to living than owning a home. You also may think you can’t afford to buy a home because you make X amount of money but the truth is in the numbers. At first if you run the numbers renting DOES look like a cheaper option, sometimes, but with a typical yearly increase of 7% in rents and the super high increases, especially in Las Vegas, in renting prices at any given time… in 4, 5, 6 years this now can become more expensive than your mortgage on owning a home…. and think about it, if you bought that home and sat on it for 4, 5, 6 years you could be building EQUITY in the home. By owning that home you already have more cash and something to show for it compared to a friend or yourself if they/you decided to rent, let alone a tax benefit on your federal income tax, appreciation, built-in savings account, etc.. Now, let’s get to the facts and the comparisons.
- Making a mortgage payment increases your personal wealth and helps you get anything you wish for on credit.
- Big tax advantages for homeowners. Deduct your interest and property taxes.
- A mortgage payment stays the same on a fixed-rate loan for the life of the loan. NO RENT/MORTGAGE INCREASES AND NO SURPRISES.
- Make any improvements to the home that you would like, this is your masterpiece after all!
- For 2019 home prices are predicted to appreciate by 7%. On a $300,000 home that is a $21,000 increase.
- Owning a home there is a pride and by moving in you form a community with your neighbors.
- When owning a home, your mortgage stabilizes your budget. You know exactly what you need to pay and you will pay it and work around your mortgage, again this isn’t raising (taxes may increase).
- A recent study from realtor.com® shows that 60% of millennial singles say that homeownership makes someone a lot more attractive.
- Paint your walls, change your carpet and have a monkey as a pet (jk, but really) this is your home after all so you can do whatever you’d like to it and have anything you want.
- Special finance programs available for first-time home buyers to get you into a home with little money and help on down payment.
- Renting looks like a cheaper route but in the long run, it becomes more expensive.
- Rents have an average of 7% increase every year in Las Vegas and that doesn’t mean that’s all that they can raise it, we have seen steeper increases in Las Vegas lately.
- Increase of people = Increase of rent rates
- Rents seem to increase more/faster than home prices.
- Renting a 2 bedroom apartment as of January 2019 will run you an average of $1,097/month.
- Renting a 2 bedroom single family home as of January 2019 will run you an average of $1,200/month.
- Renting isn’t secure, you can be told to move, rents increased, after your lease is up, leaving you stressed and discombobulated.
- Want to change your wall color? Call the landlord and ask. This isn’t your home so it isn’t your decision to paint the walls or make any changes in the home.
- The cost to move into a rental for the first month would cost you: first months rent, plus security deposit (usually the amount rent is), cleaning deposit, application fee, pet deposit (if pets) and any other deposits they may charge you. Easily $3,000 – $4,000 to just move in.
- RENT MONEY GOES OUT THE WINDOW. NO WRITE OFF, NO PRIDE OF OWNERSHIP, NO TAX BENEFIT, NO CUSTOMIZATION.
All in all, if you are looking for stability, pride, enjoyment, and accomplishment, homeownership is for you. There is no more real estate/land being made and it is one of the best investments you can make. If you are nervous about buying at the “wrong” time because of the market just know that there is no wrong time. There are some BETTER times to buy when prices are low but we have to look at the market and the economy at that point. Prices only go low because of the demand of homes go down and supply goes up and people aren’t buying or can’t afford it due to circumstances with the economy and jobs. When homes are at good values its signs for a strong economy.
We hear a lot about “I’m going to wait to buy when the market goes down,” but it’s not as easy to wait for a home to become “cheaper” if when the market “goes down” you get a decrease in salary, job, or circumstances change. When you commit yourself to something that is a great investment, you will try your hardest to make the payment and keep the home, and you can always refinance if rates are lower in the future.
If you have any further questions on renting vs buying in las vegas or anything related to real estate. You can contact me directly and discuss further using the contact me form on this website.