Are you considering buying a home in the Texas Hill Country? The current mortgage rates may seem intimidating, but keep reading to discover why buying over renting and purchasing a home now could be advantageous.
Home Values Appreciate Over Time
The trajectory of home prices can be confusing, but it’s important not to be misled—nationally, home prices are still rising. Data released by the Fed confirms a consistent increase in home values since the 1960s. The 2008 housing crash was an anomaly, but since then, prices have resumed their upward trend. A look at the chart below, which traces data back to 2013, reveals a steady climb in the median sales price of homes in Boerne over the last 11 years.
This is a compelling reason to choose buying over renting: as your home appreciates, so does your net worth. The Urban Institute emphasizes that “Homeownership is critical for wealth building and financial stability.“
Major Equity Gains
Renting means your monthly payments are effectively lost to your landlord. Conversely, buying a home means every payment enhances your stake in the property, contributing to both principal and interest. Not only do you gain a place to call “home,” but you also build equity. As property values rise, so does your equity, increasing your financial leverage.
Rent Continues to Rise
Conversely, rent tends to escalate annually. While renting might initially be more affordable, lease renewals often come with price hikes. Similar to home values, rent has risen steadily for six decades. Owning a home with a fixed monthly mortgage stabilizes your financial planning and allows you to invest in an asset that appreciates over time.
We Can Help!
Interested in purchasing a home but unsure where to start? You’ve come to the right place! We’re committed to assisting you every step of the way. We would be thrilled to arrange a buyer consultation, connect you with a trusted lender, and guide you through each phase of the buying process, ensuring you feel confident about your decision. If you’re curious about the current market value of your property or the equity you’ve accumulated, we’re here to help. Contact us today to discover how we can serve you!
