Why Owning NJ Real Estate is the Best Long-Term Investment

NJ real estate

For the majority of Americans, the most colossal expense that they face each year is housing. According to the Bureau of Labor Statistics, housing costs account for about 30 percent of total yearly expenditures. Depending on your location, renting or owning costs can differ tremendously. One thing you should know while deciding whether to rent or buy: purchasing a home, if financially possible, is a significantly smarter decision than renting.

Here’s a rundown on America’s current situation: across all income levels, more and more Americans are renting. Obtaining a job, purchasing a car, buying a home, getting married and having kids are a few of the features that make up the notorious “American Dream.” Notice that renting isn’t necessarily included in that list, though it could present itself as a necessary stepping stone. We know that to purchase a home, we have to be financially stable, which is not always an easy task. Buying a home, which aids in building equity, sets you in the fast lane to build wealth, the cynosure of the American Dream. Renting, on the other hand, does zilch in establishing a financial foundation.

In order to purchase any item that requires a loan or a large sum of money, it’s necessary to have built up noteworthy credit. Since a home is likely the most expensive purchase you’ll make in a lifetime, a good credit score is critical to be able to do that. Not only is a worthy credit score important, but having a plan as to how to afford buying said home deserves your attention.

Why is buying better than renting?

Maslow’s hierarchy of needs spells it out at the most fundamental level: shelter is a basic necessity. Purchasing a home as a place to live provides stability and safety for you and your loved ones. That’s not to say that renting will not satisfy this need, but when renting you are at the mercy of another individual. Buying a home means that you don’t have to worry about a landlord changing terms or deciding to sell the property. With each mortgage payment towards your new home, you’re one step closer to full ownership. It’s essentially an enforced savings plan.

While renting typically comes with a fluctuating monthly payment, buying a home is characterized by a steady mortgage payment. In terms of budgeting, steady cash flow, and a normal financial plan, you can strategically plan for a monthly payment as well as any unexpected surprises. Leaky roofs or broken appliances will undoubtedly pop up at some point, but because of your careful planning, the financial aspect of repairs shouldn’t be an issue. If a landlord is in charge of repairs, it runs on their timeline, so you may be waiting for quite a while until your broken washer receives some TLC. Owning a home places you in charge of maintenance; you’re on your own time schedule and you choose the personnel, appliances and/or materials that you prefer.

If you are able to buy and still decide to rent, your housing payments are doing you no good, except for securing you a place to live from month to month. In other words, you are not investing in a home or building equity. Equity is built by making on-time mortgage payments each month, hopefully lowering your cost of living during retirement. With more equity, you have access to more credit. In the case of an emergency, you have the option of refinancing by borrowing against it.


For the fifth year in a row, Gallup stated that Americans chose real estate as the most intelligent long-term investment.


Investors have predicted that the housing market will only grow stronger in the years to come. Like everything else, home values are on the rise, which means there’s no better time than the present to purchase your first (or next) home. If you’re renting, it’s also an ideal time to steer towards the path of owning a home. According to the National Association of Realtors, 51% of renters would meet the requirements for a mortgage if they applied now. Before you take that first step towards buying a home, contact us to meet with an experienced NJ real estate legal team that will help you make the best home ownership decisions.

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