The Many Benefits of Buying vs. Renting

If you’re a renter who’s thinking about buying your first home, and you listen to all the noise these days, it can feel confusing or even daunting.

First, there’s the challenge of making the finances work. And then, there’s finding a home that will Live Up to everything you always imagined that would come with home ownership.

Well, we’re here to tell you that buying a home — one built by the top homebuilder in Richmond — can be a smarter, savvier, and more cost-effective move than continuing down the rental route. Yes, we said more cost effective.

Here are some of the top reasons why buying a StyleCraft new-construction home makes much more sense than continuing chasing the monthly rent payment.

Rising Rental Rates

Maybe you’ve heard it on the news. Or experienced it firsthand. Home rental rates are on the rise — big time. Chalk it up to being on the wrong side of supply and demand, continued financial ripple effects from COVID, and even opportunistic landlords. No matter the reason, a long-term strategy of renting at such astronomical rates can be a bleak, unsustainable situation. Rising prices, however, can benefit a home’s worth and homeowner’s equity. And the longer you walk in and out of that same door, the more doors you open thanks to increased equity.

Your House, Your Rules

When you’re a renter, every hole you nail in the wall can come with a price. Rental agreements and overbearing landlords stymie your style and limit your ability to decorate your home to your standard. But when you buy a home, you don’t need to ask for permission or forgiveness for painting walks or hanging wall art. In fact, when you purchase a new-construction home from StyleCraft, you get to have a say in a range of structural options — from flooring and lighting fixtures to Flex Room uses. In other words, you can tailor your home’s form and function to your needs today and tomorrow.

Invest in Your Future

Let’s be crystal-clear: a rental payment is an investment in your landlord’s financial future, whether it’s building more rental properties or amassing a museum-esque collection of Fabergé eggs. Honestly, for our purposes here, think of the most inane, impractical expenditure… and that’s where your rental payment is going.

But a mortgage is an investment in yourself — your hopes, your dreams, and your Fabergé eggs (if that’s what you really want).

Homes build equity long after they’re built, month by month, mortgage payment by mortgage payment. And if you need to access cash, they can be the most sensible source of funding.

Homes have other ways of generating cashflow, too, whether you’re buying a rental property, looking for a paying roommate, or renting out the entire property or just a room or two through services such as Airbnb.

And then there’s the easiest way to generate wealth through home ownership: doing absolutely nothing. Most homes naturally accrue value over time — and if you do a little DIY work here or hire a contractor for a special project there — you can generate a generous profit when you finally sell down the road.

It's Less Expensive to Buy?

Wait, what?

Conventional wisdom says that buying a home is more expensive than renting a home. Much more expensive, right??

There’s a good reason why may people still steadfastly believe this: it’s been true for so long. But the home market is different today, and a number of factors have put the price of renting and owning in the same ballpark. In many cases, the bottom line of buying is more attractive than renting.

One big reason for this startling reversal is the increase in rental rates, which have surged more than 30 percent. For 40%-plus of renters, that’s more than 35% of their total income.

The rising tide of remote work has also leveled the playing field between renting and buying. That’s because if you had a job where you needed to report to a brick-and-mortar location each day in a high-priced market, such as Washington, D.C. or anywhere around the Beltway, you may have been forced to rent due to budgetary concerns. But with remote work, you may have earned the flexibility to cast a wider net — working within a far greater radius, such as Richmond. And in our market, buying may not only be in the cards, but be the more fiscally sound decision.

Increase Your Social Ties

When you rent, it’s entirely possible to form close bonds with neighbors. But due to the nature of renting, it’s also possible that those neighbors-turned friends may be on the move while you stay put. Or maybe it’s you who closes one door and opens another.

Sure, homeowners also make moves, but because of all the financial and other incentives laid out in this article, it happens with far less frequency. Additionally, there are a number of ways in which a new-construction community can build your friendships. Take community amenities, for example, where you can find a pickleball partner or a go-getter for your early morning walks. Then there are clubhouses and common areas, where occasions from happy hours to impromptu gatherings bring neighbors closer together. Whether your children are making lifelong friends with the neighboring kids in the cul-de-sac or you’re in a 55-plus community traveling in the same lane of life as your neighbors, there are numerous reasons why homeownership brings new-construction community homeowners closer together.

Making the move from renting to owning can sound like a formidable challenge — on the surface. But dig deeper, and you’ll see that not only is it easier to Live Up in a home of your own, but the journey to get there can be faster, easier, and more affordable than you ever imagined.

Give our team a call at 804.523.4663 to get started on your homebuying journey.