Rent Or Buy?
Owning your own home is part of every American's dream, right? Right now, more Americans own homes than ever before, and conventional wisdom says it's better to buy a home than rent one.
While that is true in most cases, there are exceptions. Buying a house is a great financial investment for many, and it does not guarantee to save you money. Let's take a look at several of pros and cons of renting and buying to help you determine if now is the time to buy a home or if you should continue renting for the time being.
Renting is usually more beneficial than buying when:
- You move frequently
- Your rent is very low
- You don't expect to live more than another 15 years
Renting a property or apartment certainly requires less maintenance on your part, compared to a home. Renting gives people the opportunity to live a flexible, trendy life, with the flexibility to move whenever you want. Renting apartments also means that you might have the ability to put your money into other investments.
Buying is usually more beneficial than renting when:
- You plan on staying in one location for numerous years
- Own a home and put down roots
- You want to invest in housing
Freezing your monthly payments is the what makes buying a home worthwhile. There are several other advantages as well:
- You can deduct mortgage interest on your income taxes.
- You can stop making payments when the loan is paid off.
- Your space, your rules!
- Ability to remodel, expand, and tear down
As you can see, there are plenty of pros and cons to both buying and renting. The main guidelines when choosing between renting or buying a home includes your lifestyle, your finances, and your ability to secure a loan.
Not everyone can secure a mortgage. A credit score that is too low, or too much monthly debt will disqualify you for a mortgage or loan needed to afford a home.
Renting is a great short-term housing solution for millions of Americans each year. It's a great option for those who want a more flexible lifestyle and don’t want to be tied down with the the responsibilities of homeownership.However when you own your home, you have much fewer restrictions, and HOA rules. Add or modify to your heart’s content! If you ever do want to move, you can sell and use proceeds for bigger/better home.
It’s up to you to decide if you’d prefer to rent or buy - each situation is different. Weigh your risks, and lifestyle choices to make the decision that is best for you.
If you’d like to learn more about the pros and cons of each, as well as resources to help you along the way, let’s connect to discuss your options. This way, you can make a confident and informed decision with a trusted expert on your side.