5 reasons to stop renting and build a new home

Unprecedentedly high housing prices have discouraged many potential first-time buyers, who keep renting instead. Unfortunately, rent prices are also at an all-time high so it might seem like they face a lose-lose situation..

In Utah, where roughly a third of the population are renters, rent prices have gone up 10%–15% in the past year, with the Salt Lake metro area seeing a 17.7% rise, according to a KSL.com article.

Because the housing market has impacted rental prices the same way it has purchase prices, it's as good a time as ever to buy a home. Home seekers then have two options: building or buying an existing home. In this market, the former might be a better option as it allows buyers to avoid a lot of stress and competition.

Here are a few reasons why you should stop renting and start building.

Reason #1 to stop renting: no equity

Renting comes with its share of benefits, among which are convenience and the absence of upfront costs. However, these advantages come at a huge (literal) expense: the inability to build equity. As a renter, the money you are handing to your landlord every month is a sunk cost.

If you are renting a two-bedroom apartment in Salt Lake City, which currently costs about $2,300/month according to Apartment List, you're spending nearly $28,000/year that you won't recoup. Needless to say, these rent costs add up over the years and are a huge reason to get on the property ladder as soon as it is feasible for you.

When you own your own home, making monthly payments is akin to putting your money into a savings account rather than paying it to a landlord. In many cases, when it comes time to sell homeowners recoup more than they ever paid in mortgage payments.

Reason #2 to stop renting: uncertainty

On paper, renting is practical because if there is any issue with the home — like a malfunctioning water heater or a running toilet — your landlord is supposed to take care of it. But this doesn't always happen.

There are plenty of stories out there from renters about unresponsive landlords and major home problems that go unresolved for a long time (sometimes indefinitely).

Another point of uncertainty stemming from renting is that the terms of your tenancy are dictated by your landlord. Once your lease is up, they can choose to increase your rent, change certain terms or not renew your lease at all.

This uncertainty goes away as a homeowner. Unless you decide to refinance or restructure, your mortgage terms will remain the same as the original agreement.

Reason #3 to stop renting and #1 to build: Making it yours

Two-fers are great, so here's a reason to both stop renting and to choose building over buying used: personalization opportunities.

As a renter, the modifications you can make on your home are limited — with varying degrees of leniency depending on your landlord and lease terms. Some renters aren't allowed to hang pictures on walls, let alone complete any sort of improvement project. And let's face it, you probably don't want to repaint or to add a garden to a temporary living space.

Even when buying a used home, you'll find some features you don't like. Some you can upgrade easily, like outdated countertops. But for others, like a study that's too small to be your home office you must accept the deficiencies or undertake a costly and inconvenient remodel.

When you build a brand-new home, you'll work with a variety of personnel — including architects and designers — to ensure your new home is your dream home from the outset. Whether you want a covered patio for entertaining or an extra-large garage for all your tools and toys, reputable home builders like Woodside Homes will work alongside you to achieve your vision.

Reason #2 to build: The price is the price

In today's market, heavily contested bidding wars have become the norm — not the exception. When putting an offer on a home, you can expect to compete with dozens of other bidders, many of whom have placed a bid substantially higher than the list price.

Though uncommon, some real estate agents in Salt Lake have reported overbids of up to $100,000. As such, many prospective home buyers are putting in 10 or more offers before being able to close, reports the Deseret News.

Building a home prevents having to go up against other bidders. You get pricing transparency throughout the entire process and once the purchase contract is signed, your price is locked — regardless of changes in market dynamics while your home is being built.

Reason #3 to build: Peace of mind

You know what's better than a new-car smell? New-house smell. The first steps you take in your new home will be the first steps anyone's taken there (minus the builders, but you get the point). No scratches on the hardwood, no paint chipping off, no ceiling fan dust to clean.

Being your home's first occupants is incredibly reassuring, but what provides even more peace of mind with a built home is the knowledge that all the used materials and installed appliances are new, efficient and safe. You don't have to worry about faulty wiring or an A/C unit that won't make it through the summer.

But of course, this peace of mind will only come if you use trustworthy builders who don't take any shortcuts. Woodside Homes, who has been in the business for over 40 years, isn't just focused on building you a home — they're focused on building the right home for you.

Woodside Homes' mission is to help you live your best life in a community where you can flourish. They take pride in providing healthy, cleverly designed homes so that you can love where you live. Start living the life of your dreams in a custom-built home that fits your needs. Contact Woodside Homes today to get started.

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