There is a lot of talk about buying a home that can lead a current renter to believe that now may not be the time to buy. References to factors like higher interest rates and higher home prices paint a narrow picture. Situational deterrents alone will not give you an accurate vision of your potential future gains when you decide to become a homeowner. 

Here are 5 compelling reasons to make 2024 the last year you pay rent!

1. Rent Can Increase but a Mortgage Payment Stays the Same

The cost of rent has increased at a very fast rate and this is expected to continue. The high cost of rent means that paying a monthly mortgage is often comparable to or even cheaper than renting a home. According to RentCafe, the average rent in Omaha is $1,186.00 for a 912 sq. ft. apartment.  Use Zillow’s Rent vs. Buy Calculator to find out how many years it will take before the cost of buying equals the cost of renting known as the breakeven horizon.

Rent fluctuation can cause budget disruptions but a fixed-rate mortgage payment does not, giving you  more stability. You can use this Mortgage Calculator to estimate your monthly mortgage payment for a new home loan. Enter a home price, your expected down payment, and desired loan term to get an estimated monthly breakdown of payments.

2. Homeownership is an Investment in You

Rent is a payment to your landlord, and ultimately an investment in their future. Home ownership is an investment in you. Home values have risen and are expected to continue rising in the future, making homeownership a profitable long-term investment. According to Realtor.com, in October 2023, the median listing home price in Omaha, NE was $319K, trending up 10% year-over-year. Increasing property values means that the money you spend on your home will provide significant returns in the long run.

And, if you’re thinking that interest rates are just too high to take a dip in the homeownership pool, consider this, rent is paying 100% interest. Not one penny of that rent goes towards the betterment of your financial future. I would argue that real estate is the best “savings account” with the best return out there.

3. You Have the Freedom to Express Yourself

Home ownership equals freedom. You can paint your walls any color you want or make more permanent changes to your surroundings not only without losing a damage deposit, but also without losing the money that you spend on the materials in the first place! Better Homes & Gardens has Every 2024 Color of the Year We Know So Far to bring your new home to life.

 You can also bring home any type of furry friend that you want to without concern that your pet is not allowed or paying for additional pet deposits or monthly rent increases on top of the expense of owning a pet. 

4. Ownership Does Not Always Mean a Traditional House

You picture a traditional suburban home with a yard to maintain and no amenities included when you think about home ownership, leading you to the conclusion that the only way to keep your on-site gym and pool with no exterior home maintenance is by renting an apartment. That is not at all the case. Consider buying a condominium!       

The Spruce details The Difference Between a Condo and an Apartment to help you decide if condo living is right for you.

5. Home Ownership Establishes Generational Wealth

Homeownership supports the ability to achieve generational wealth because it is an asset that can be passed down. Homeowners gain equity as home values increase. This equity can also prevent unexpected financial instability within the family because loans or lines of credit may be available for an emergency.

Homeownership can help establish better financial habits. The monthly payments made toward your mortgage function as an automatic savings mechanism. Each time you pay, your debt goes down and you gain more equity in your home. This is wealth that grows over time and can eventually be used in several different ways.

I am here to find you the right home when you decide you no longer want to be a renter! Let’s talk about how to make homeownership your reality in 2024!