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Unprecedentedly high housing prices have discouraged many potential first-time buyers, who instead are deciding to continue renting. Unfortunately, renters are faced with the same problem as buyers as rent prices are also at an all-time high. In Utah, where roughly a third of the population are renters, rent prices have gone up 10–15% in the last year, with the Salt Lake metro area seeing a 17.7% rise, according to a KSL 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 used. 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 2-bedroom apartment in Salt Lake City, which currently costs about $1,800 per month, according to Rent.com. you're spending nearly $28,000/year that you can'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.
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 ambiguity goes away as a homeowner: you are the one in charge of all home repairs/improvements and your mortgage will always be under the terms you originally agreed on.
Reason #3 to stop renting and #1 to build: Making it yours
Twofers 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 a remodeling project.
Even when buying a used home, you'll find some features not to your liking. Some you can upgrade easily, like outdated countertops. But others, like a study that's just a tad too small to be your home office, either have to be a concession or undergo intensive remodel to fit your desires.
When you build a brand-new home, you'll work with a variety of personnel — including architects — to ensure your new home is your dream home. 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 #4 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 ten or more offers before being able to close, the Deseret News reports.
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 in — regardless of changes in market dynamics while your home is being built.
Reason #5 to build: Peace of mind
You know what's better than 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.
Contact them if you want more information regardless of where you are in the home-buying journey.
