Renting vs Owning – Which is Right for You?
If you’re considering moving this year, you may wonder if renting or owning is the best choice. While there isn’t a one-size-fits-all approach to the matter, there are certain questions you should ask yourself to decide.
Do you Have Long-Term Plans?
When you buy a home, you can’t move as easily as you can when you rent. If you are ready to settle down in an area and commit, there’s no question that buying is better. But, if you aren’t sure where you want to settle down yet or you enjoy moving every year, renting may be the better choice until you are ready to set up roots.
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Do you Have Money for a Down Payment?
Most loan programs require at least a small down payment and there are many down payment assistance programs for first-time homebuyers. When you put money down on a home, you build home equity immediately and make your loan more affordable.
Can you Take Care of a Home?
When you rent, the landlord oversees all renovations and repairs. When you own a home, the responsibility falls on you. If you’re able to handle the financial and physical responsibilities of owning a home, it is much better than renting. On average, it costs 1% of a home’s value to keep up with maintenance and repairs.
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Can you Qualify for a Mortgage?
Unless you have the cash to buy a house (most people don’t), you’ll need to qualify for mortgage financing.
The good news is that you don’t need to be rich or have perfect credit, but you should meet some or all of the following:
Would you like the freedom to do as you please with your home?
When you rent, you don’t have the freedom to do what you want with it. You must get your landlord’s permission to make any changes, or even to have pets. When you own a home, you make the decisions and can do what you want with the property within the city or homeowner’s association’s guidelines.
Final Thoughts – Should you Rent or Buy?
Renting a home doesn’t build equity or give you a return on your investment. Buying is the best way to go when you are ready.
If you have the money saved, have a stable job, and are all ready to settle down, then buying a home can be the best way to invest your money and give you and your family a great place to live. Understanding where and what to purchase while staying within your budget and achieving a significant return on investment is crucial.
If you are interested in buying your dream home, feel free to reach out to us! We would love to make your goals a reality and become your Lenders for Life!