Rent vs. Buy | Daytona Beach Property Search

Why Homeowners Are Thankful They Own

Countless people have set out on the exciting journey of homeownership. Ask around and you’ll find the vast majority are thankful they took the leap and bought a home. But why? It’s because of the many emotional and lifestyle benefits that come with being a homeowner.

So, if you’re trying to decide if you want to rent or buy a home, here are just a few of the many benefits you could look forward to if you buy.

It’s a Safe Haven

Owning a home goes beyond just having a roof over your head. It provides a sense of security and safety. In fact, in a survey from Fannie Mae, respondents say “having a sense of privacy and security” is one of the top reasons homeownership is preferred to renting. And in a different Fannie Mae survey, “living in a place where you and your family feels safe” is another one of the top benefits of homeownership.

Your home is a place where you can truly relax and unwind. Knowing that you have a sanctuary to return to at the end of the day is a great source of comfort.

It’s a Canvas for Self-Expression

For many homeowners, their home is a reflection of who they are. The National Association of Realtors (NAR), says:

“The home is yours. You can decorate any way you want and choose the types of upgrades and new amenities that appeal to your lifestyle.”

From the color of the front door to the art hanging on the walls, every detail contributes to a unique expression of personal style. Put simply, owning a home gives you the freedom to make changes and improvements that resonate with your personality.

It Helps You Feel More Connected to the Community

Stability is another cornerstone of homeownership. The longer you stay put, the more emotionally connected you are to your community. For example, if your neighborhood does cook-outs, block parties, or other events, you’ll feel more engaged and probably build meaningful relationships with those around you. As NAR states:

“Remaining in one neighborhood for several years allows you and your family time to build long-lasting relationships within the community.”

The sense of community where you can make life-long friends helps give you more stability and predictability than you’d have if you move each time a rental lease renews.

Its Where Lifelong Memories Are Made

Not to mention, your home is where you’ll make many memories. It’s a backdrop for the stories of your life. Celebrating milestones, hosting gatherings, and building a treasure trove of special moments within the walls of your home is a heartwarming experience to be thankful for.

Bottom Line

As you start thinking about buying a home, remember why so many people are glad they did. Homeownership isn’t just a financial decision. It’s about having a stable place where you can make lasting memories. If you’re thinking of buying a home and want advice, talk with a trusted real estate agent.

Homeowner Net Worth Has Skyrocketed

If you’re weighing your options to decide whether it makes more sense to rent or buy a home today, here’s one key data point that could help you feel more confident in making your decision. Every three years, the Federal Reserve Board releases the Survey of Consumer Finances (SCF). That report covers the difference in net worth for both homeowners and renters. Spoiler alert: the gap between the two is significant.

The average homeowner’s net worth is almost 40X greater than a renter’s. And here’s the data to prove it (see graph below):

The Big Reason Homeowner Net Worth Is So High

In the previous version of that report, the net worth of the average homeowner was roughly $255,000 and that of the average renter was $6,300. But in the release that just came out this year, the gap widened as homeowner net worth climbed dramatically. As the Survey of Consumer Finances (SCF) report says:

“. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.”

One of the biggest reasons homeowner net worth skyrocketed is home equity.

Over the last few years, known as the ‘unicorn’ years for housing, home prices went through the roof. That’s because there weren’t enough homes for sale, and there was a big influx of buyers rushing to buy them and take advantage of the then record-low mortgage rates. That imbalance of supply and demand pushed prices higher and higher. As a result, most homeowners who had a home during that time saw their equity grow a lot.

If you’re still in the middle of making your decision on whether to rent or buy, you may wonder if you missed the boat on the big net worth boost. But here’s what you need to realize. As a recent article in The Ascent explains:

“Whether your net worth increased in recent years or not, there are steps you can take to boost that number in the coming years. . . buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time.”

Historically, home prices climb over time. Even now that mortgage rates are closer to 7-8%, prices are still rising in many areas of the country because supply is still low compared to demand. That’s why expert forecasts for the next few years call for ongoing appreciation – just at a pace that’s more typical for the housing market.

While it likely won’t be the record ramp-up that happened over the last few years, people who buy now should continue to grow equity in the years ahead. That means, if you’re ready and able to buy a home today, you’ll be making an investment that’ll help build your net worth in the long run.

As Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:

“. . . when deciding to rent vs buy, one must calculate the total cost of homeownership (maintenance, utilities, commuting, etc.) and the total financial benefit. Based on new Fed data . . . the median net worth of homeowners was $396,200 vs renters at $10,400. There is no question about the wealth gains that homeownership provides.”

Bottom Line

If you’re on the fence about whether to rent or buy a home, remember that homeownership can give your net worth a big boost over time. If you want to learn more about this or the many other benefits of owning a home, connect with a local real estate agent.

How Buying a Multi-Generational Home Helps with Affordability Today

In today’s world of rising housing costs, many buyers are looking for ways to still be able to buy a home. Some of them have found a solution in multi-generational living.

Multi-generational living is when two or more adult generations live together under one roof. This includes siblings, parents, or even grandparents. Here’s an in-depth look at why more buyers are choosing this option today, so you can see if it may be right for you too.

Reasons To Buy a Multi-Generational Home

According to a recent study by the National Association of Realtors (NAR), the top two reasons people are opting for multi-generational homes today have to do with affordability (see graph below):

Cost Savings: About 28% of first-time buyers and 11% of repeat buyers are deciding on a multi-generational home to save on costs. By pooling their resources, households can share the financial responsibilities like mortgage payments, utilities, property taxes, and maintenance, to make homeownership more affordable. This is especially helpful for first-time homebuyers who may be finding it tough to afford a home on their own in today’s market.

More Space: Another 28% of first-time buyers and 18% of repeat buyers are doing it because they want a larger home they couldn’t afford on their own. For some of the repeat buyers who listed this as a main motivator, it could be because they find themselves taking care of older parents while also welcoming back young adults who’ve returned to the nest. With everyone chipping in and combining their incomes, suddenly, that big dream home with more space is within reach. As the Triangle Business Journal explains:

“Choosing multi-gen living allows people to purchase a home much larger than they could afford on their own by leveraging the combined income, credit and a down payment of those that they will be occupying the home with.”

Lean on an Expert

If you’re interested in this too, partner with a local real estate agent. Finding the perfect multi-generational home isn’t as simple as shopping for a regular house. That’s because there are more people with even more opinions and needs that should be considered.

You’ve got to make sure everyone has their own space, find room for shared household time, and possibly even create adaptable areas for older relatives. It’s a puzzle, and the pieces need to fit just right. Your real estate agent has the expertise and local knowledge to help you find that home where everyone can be comfortable without breaking the bank. As MoneyGeek.com puts it:

“Having a good multigenerational property can improve the prospects of success when living with loved ones. A multigenerational home should fit the specific needs of most family members regardless of age or health. Speaking to a real-estate agent can help you gain clarity and locate a fit.”

Bottom Line

Buying a multi-generational home can be a smart way to tackle some of today’s affordability challenges. When you team up to share expenses, you can make your dream of homeownership more attainable. If this sounds like an option for you and your loved ones, connect with a local real estate agent to help you find a home that’s the perfect fit.

The Difference Between Renting and Buying a Home [INFOGRAPHIC]

Deciding to own a home or rent one is still a big choice for many people. The decision depends on personal circumstances and financial goals. Both options have advantages. This article will discuss the advantages of owning a home versus renting one. It will help you make a smart choice that fits your needs and dreams.

Building Equity

One of the primary advantages of owning a home is the opportunity to build equity. When you make your mortgage payment, some of it goes towards the loan’s principal, increasing your home’s equity. Over time, your home typically appreciates in value, allowing you to build wealth and financial stability. When you rent a property, you don’t have the chance to build equity. Your monthly payments benefit the landlord’s equity.

Investment Potential

Real estate has been a sound investment. Homeowners may see their property value increase if they buy in a popular area. Additionally, homeowners can leverage their property as collateral for loans or even generate income by renting out a portion of the property. These investment opportunities are generally not available to renters.

Stability and Control

Owning a home provides stability and control over your living space. You can renovate, paint, and decorate as much as you want without asking the landlord. This control extends to decisions about landscaping, security measures, and energy-efficient upgrades. Renters, however, must typically adhere to restrictions set by the landlord or property management.

Predictable Monthly Payments

With a fixed-rate mortgage, homeowners enjoy predictability in their monthly housing expenses. Your mortgage payment stays the same throughout the loan, making it easier to plan for future goals. Rent costs can increase yearly because of market conditions or landlord choices. This can make it difficult to budget for future expenses.

Tax Benefits

Homeownership offers several tax advantages. You can deduct mortgage interest and property taxes on your federal income tax return. This might lower your tax liability. Additionally, if you sell your primary residence, you can benefit from a capital gains tax exclusion on profits (up to a certain threshold), which can result in substantial savings.

Sense of Community

Owning a home often fosters a stronger sense of community and belonging. You’re more likely to establish long-term relationships with neighbors and engage in local activities when you plan to stay in an area for an extended period. Renters may not have the same level of commitment to a community, as their tenure can be more transient.

Retirement Planning

Homeownership can be an integral part of retirement planning. Paying off your mortgage before retirement can significantly reduce your monthly expenses, allowing you to live comfortably on a fixed income. Moreover, if you decide to downsize or sell your home upon retirement, you can use the proceeds to fund your retirement lifestyle or pass down wealth to your heirs.

Conclusion

The decision to own or rent a home is a personal one that depends on individual circumstances, financial goals, and lifestyle preferences. Owning a home offers numerous benefits, including building equity, investment potential, stability, and tax advantages. However, renting can be flexible for those who prioritize mobility and lower upfront costs. Ultimately, the right choice is the one that aligns with your long-term objectives and provides you with the security and satisfaction you seek in your liv

Some Highlights

Consider these three important factors when deciding between buying a home or renting.
Buying a home means avoiding rising rents, owning a tangible and valuable asset, and growing wealth over time.
If you’re ready to enjoy the advantages of owning a home, connect with a local real estate expert to discuss your options.

Growing Your Net Worth with Homeownership

Imagine where you want to be in a few years. You might be thinking about your job, wanting more financial stability, or setting goals you wish to achieve soon. Is owning a home a part of that vision? If it is, you should know that homeownership comes with a lot of financial benefit

Owning a home is a smart investment because it helps you build wealth and achieve financial security. As the value of homes typically appreciate over time, it increases your net worth. Currently, the value of homes is on the rise, as reported by Zillow.

“The total value of the U.S. housing market – the sum of Zillow’s estimated value for every U.S. home – is now slightly less than $52 trillion, which is $1.1 trillion higher than the previous peak reached last June.”

Homeownership is a great way to build wealth, and with home values rising nationwide, it may be a good time to consider owning a home.

Here’s a look at some data to see how much owning a home can really make a difference in your life.

Household Net Worth Is Rising

Data shows that while those in the top 1% saw the most dramatic net worth increase, people from every single tax bracket have seen their wealth grow over the past few years (see graph below):

For many of those people, the rising value of their home plays a big part in that.

Owning a Home Helps You Achieve Financial Success

You can tell homeownership had a lot to do with that growth because there’s a significant net worth gap between homeowners and renters. As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“. . . homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

The big reason why? Homeowner’s build equity. Home equity is the value of your home minus the amount you owe on your mortgage. And for most homeowners, that’s the largest contributor to their net worth. Here’s the data from First American to prove it (see graph below):

The blue part of each bar in the chart represents the proportion of net worth that comes from housing – and it is clearly a more significant contributor than other investments such as stocks, gold, and cryptocurrencies. As you can see, regardless of income levels, owning a home does more to increase the wealth of an average household than any other investment.

Bottom Line

Investing in homeownership can grow your net worth. Contact me , James Jestes 386-315-4744 to learn more.

Should Baby Boomers Buy or Rent After Selling Their Houses?

Are you a baby boomer who’s lived in your current house for a long time and you’re ready for a change? If you’re thinking about selling your house, you have a lot to consider. Will you move to a different state or stay nearby? Is it time to downsize or do you want more space to accommodate your loved ones? But maybe the biggest consideration boils down to this – will you buy your next home or choose to rent instead?

That decision ultimately depends on your current situation and your future plans. Here are two important factors to help you decide what’s right for you.

Expect Rents to Keep Going Up

The graph below uses data from the Census to show how rents have been climbing steadily since 1988:Rents have been going up consistently over the long run. If you choose to rent, there’s a risk your rental payment will go up each time you renew your lease. Having a higher rental expense may not be something you want to deal with every year.

When you buy a home with a fixed-rate mortgage, it helps stabilize your monthly housing payment. This allows you to lock in your monthly payment for the duration of your home loan. That keeps your payments steady and predictable for the long haul. Freddie Mac sums it up like this:

“. . . homeowners with fixed-rate loans will see little to no change to their monthly housing cost over the life of their loan. You can be confident in knowing that your mortgage payments won’t change much in the long term, even when life’s other costs do.”

Owning Your Home Comes with Unique Benefits

According to AARP, buying your next home is a better long-term strategy than renting:

“Though each option has pros and cons, buying provides more pros, with a broader range of benefits.”

To help you choose what you’ll do after you sell, here are just a few of the benefits of homeownership that article covers:

Owning your home can help you save money for the future. Your home, and the equity you build as a homeowner, can provide generational wealth that could be passed on to loved ones, giving them a better life.
You might not have to pay a monthly mortgage payment at all. If you have enough equity to buy your next home outright, you wouldn’t have a monthly mortgage payment. While you might still need to cover property taxes or maintenance fees, not having to worry about a monthly mortgage payment could be a big relief.
Aging in place can be simpler. If your needs change, owning your home gives you the freedom to make renovations and updates that can make everyday life easier.

Bottom Line

If you’re a baby boomer who’s wondering whether you should buy or rent your next home, talk to a reliable real estate agent for advice. With rents going up and homeownership providing so many benefits, it may make sense to consider buying your next home.

Owning Your Home Helps You Build Wealth

You might have heard some folks say it’s higher to lease than buy a house proper now. However, even immediately, there are many good reasons to change into a house owner. One in all them is that proudly owning a house is often considered as a superb long-term investment that helps your internet price grow over time.

Homeownership Builds Wealth No matter Revenue Degree

It’s possible you’ll be shocked to study owners throughout numerous revenue ranges have a a lot increased internet price than renters who make the identical quantity. Knowledge from First American helps illustrate this level (see graph under):

What makes wealth a lot increased for owners? A latest article from Realtor.com says:

“Homeownership has lengthy been tied to constructing wealth—and for good cause. As a substitute of throwing lease cash out the window every month, proudly owning a house permits you to construct residence fairness. And over time, fairness can flip your mortgage debt right into a sizeable asset.”

Principally, the wealth you accumulate whenever you personal a house has quite a bit to do with fairness. As a house owner, fairness is constructed up as you pay down your mortgage and as residence prices appreciate over time. Mark Fleming, Chief Economist at First American, explains how this similar profit isn’t true for renters in a latest podcast:

“Renters as non-homeowners acquire no wealth profit as residence costs rise. That wealth really accrues to the owner.”

Earlier than you decide to signal one other rental settlement, now is an effective time to think about whether or not it might be higher so that you can buy a home as an alternative. One of the best ways to determine what is smart for you is to have a dialog with an actual property knowledgeable you belief. That skilled can discuss you thru the advantages that include proudly owning to find out if that’s the best subsequent step for you.

Backside Line

Should you’re undecided whether or not to maintain renting or to buy a home, know that proudly owning a house, irrespective of how a lot cash you make, can assist construct your wealth. Join with an area actual property agent to get started on the trail to homeownership.

Why Homeownership Wins in the Long Run

Right this moment’s larger mortgage rates, inflationary pressures, and considerations a couple of potential recession have some individuals questioning: ought to I nonetheless purchase a house this 12 months? Whereas it’s true this 12 months has distinctive challenges for homebuyers, it’s vital to consider the long-term advantages of homeownership when making your determination.

Think about this: if individuals who purchased a house 5, 10, and even 30 years in the past, you’re most likely going to have a tough time discovering somebody who regrets their determination. Why is that? The reason being tied to how dwelling values develop with time and the way, by extension, that grows your individual wealth. That could be why, in a current Fannie Mae survey, 70% of respondents say they imagine shopping for a house is a protected investment.

Right here’s a have a look at how simply the house value appreciation piece can actually add up over time.

House Value Development over Time

The map beneath makes use of data from the Federal Housing Finance Company (FHFA) to point out simply how noteworthy value positive factors have been during the last 5 years. And, since dwelling costs fluctuate by space, the map is damaged out regionally to assist convey bigger market tendencies.

If you happen to have a look at the p.c change in dwelling costs, you possibly can see dwelling costs grew on common by simply over 56% nationwide over a five-year interval.

Some areas are barely above or beneath that common, however total, dwelling costs gained strong floor in a short while. And in case you broaden that time-frame much more, the advantage of homeownership and the drastic positive factors householders made over time turn out to be even clearer (see map beneath):

The second map reveals, nationwide, dwelling costs appreciated by a mean of over 290% over a roughly 30-year span.

This nationwide common tells you the standard home-owner who purchased a home 30 years in the past noticed their dwelling virtually triple in worth over that point. That’s a key consider why so many householders who purchased their houses years in the past are nonetheless proud of their determination.

And whereas you’ll have heard discuss in late 2022 that home prices would crash, it didn’t occur. Although dwelling costs have moderated from the file peak we noticed through the ‘unicorn’ years, costs are already rebounding in lots of areas in the present day. Which means, in most markets, your property ought to develop in worth over the subsequent 12 months.

The choice to purchasing a house is renting, and rental costs have been climbing for many years. So why lease and take care of annual lease hikes for no long-term monetary profit? As an alternative, think about shopping for a house.

Backside Line

If you happen to’re questioning if it nonetheless is sensible to purchase a house in the present day, bear in mind the unbelievable long-term advantages of homeownership. If you happen to’re prepared to start out the dialog, attain out to an actual property skilled in the present day.

Homeownership Helps Protect You from Inflation [INFOGRAPHIC]

Some Highlights

Questioning if it is smart to buy a house as we speak even when inflation is excessive? When different prices go up on account of inflation, shopping for a house helps you retain your month-to-month housing expense steady.
Rents usually increase with inflation. Perhaps that’s why, in response to a latest survey, 65.1% of landlords say they plan to boost the hire of not less than certainly one of their properties inside the subsequent 12 months.
Particularly when inflation is up, having a steady housing cost might be useful. Join with an area actual property agent so you may learn extra and begin your journey to owning a house as we speak.

Owning a Home Helps Protect Against Inflation

You’re in all probability feeling the affect of excessive inflation day-after-day as costs have gone up on groceries, fuel, and extra. For those who’re a renter, you’re possible experiencing it rather a lot as your hire continues to rise. Between all of these elevated prices and uncertainty a few potential recession, it’s possible you’ll be questioning if it nonetheless is sensible to purchase a house at this time. The brief reply is – it does. Right here’s why.

Homeownership really shields you from the rising prices inflation brings.

Freddie Mac explains how:

“Not solely will shopping for at this time show you how to start to construct fairness, a fixed-rate mortgage can stabilize your month-to-month housing prices for the long-term even whereas different life bills proceed to rise – as has been the case the previous few years.”

In contrast to rents, which are inclined to rise with time, a fixed-rate mortgage cost is predictable over the lifetime of the mortgage (sometimes 15 to 30 years). And, when the price of most every little thing else is rising, maintaining your housing cost steady is particularly essential.

The choice to homeownership is renting – and rents are inclined to move alongside inflation. Meaning as inflation goes up, your month-to-month hire funds are inclined to go up, too (see graph under):

A set-rate mortgage lets you shield your self from future hire hikes. With inflation nonetheless excessive, when your rental settlement comes up for renewal, your property supervisor might determine to extend your funds to offset the affect of inflation. Possibly that’s why, according to a latest survey, 73% of property managers plan to lift rents over the following two years.

Having your largest month-to-month expense stay steady in a time of economic uncertainty is a significant perk of homeownership. For those who proceed to hire, you don’t have that very same profit and aren’t as shielded from rising prices.

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A steady housing cost is particularly essential in occasions of excessive inflation. Join with an actual property agent so you possibly can be taught extra and begin your journey to homeownership at this time.

It’s a Safe Haven

It’s a Canvas for Self-Expression

It Helps You Feel More Connected to the Community

Its Where Lifelong Memories Are Made

Bottom Line

The Big Reason Homeowner Net Worth Is So High

Bottom Line

Reasons To Buy a Multi-Generational Home

Lean on an Expert

Bottom Line

Building Equity

Investment Potential

Stability and Control

Predictable Monthly Payments

Tax Benefits

Sense of Community

Retirement Planning

Conclusion

Some Highlights

Household Net Worth Is Rising

Owning a Home Helps You Achieve Financial Success

Bottom Line

Expect Rents to Keep Going Up

Owning Your Home Comes with Unique Benefits

Bottom Line

Homeownership Builds Wealth No matter Revenue Degree

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House Value Development over Time

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Some Highlights

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