Buying a home is more affordable than renting and can provide a better financial advantage.
If you are considering moving to Greenville, SC, you may be wondering if it’s wiser to rent or buy a home in the current housing market when home prices are rising. Hardly surprising as we’ve seen home prices rise in the last few years. In fact, from 2020 to 2021, the median home sales price in Greenville grew from $230,000 to $258,900. However, you have to consider that not only home prices have increased – rental prices have skyrocketed as well.
Buying vs. Renting
In Greenville, rental prices are trending upwards. The average rent for a 1-bedroom apartment in Greenville, SC is currently $1,266 (as of August 2022), according to Zumper.com. Rent prices have grown 20% compared to the previous year.
According to the Greater Greenville MLS data for July 2022, the average sales price for a single-family home in Greenville is $362,327. Home prices in Greenville vary considerably by location. Usually, home prices in the suburbs are lower than those located in the city.
Assuming you buy a less expensive home with a purchase price of $180,000. According to National Association of Realtors (NAR), first-time homebuyers often make 7% down payments. Today’s interest rate is 5.90% for a 30-year fixed loan. Given that information, average payments would be $1,175.
The average monthly rent in Greenville South Carolina is $1,266 for a one-bedroom apartment whereas a monthly mortgage for a $180,000 home is $1,175. If you need more space, buying a home in Greenville makes more sense than renting.
According to the latest data from realtor.com and the NAR, it may actually be more affordable to buy than rent depending on how many bedrooms you need. So, if one of the reasons for your move to Greenville is a desire for more space, this could be the added encouragement you need to consider buying a home.
Benefits of buying a home in Greenville
Buying a home will not only help you save on rental costs and help build equity but buying a home will strengthen you and your family and give you the stability you need. Buying your Greenville home and getting a fixed-rate mortgage means your fixed payment doesn’t change every month, no matter how much the price or interest rate rises. This is an advantage over leasing, as landlords are more likely to raise rents to counter inflationary pressures.
In addition, when you buy a home, you have the opportunity to build assets which in turn increases your net worth. As you pay off your home loan over time and the value of your home continues to increase, so will your equity. This equity can make moving to a future home easier if you later decide you need a bigger home.
If you are deciding whether to rent or buy a home, contact us to explore your options. With equity and inflation shields, buying a home makes more sense if you are able to.