No matter where you live, how much you earn, or how much you’ve saved, you’ve probably asked yourself at some point: Is it better to RENT or BUY a home?
Home ownership has been on the decline for many reasons – the economy, downsizing, elevated housing prices in some areas. But regardless of your means, home ownership is still a great way to earn wealth. You need to ask yourself a few simple questions to determine if you should rent or buy.
Do you have savings for a down payment and closing costs?
- Although there are some programs that offer no money down, it’s typical to have 3.5% to 20% of a price range as your down payment.
How long do you plan on living in the home?
- The longer you live or hold onto a property, the more likely it will increase in value. But if you don’t plan on staying long or you are unsure of your future plans, it may be safer to rent.
How much home do you qualify for?
- Depending on your credit and income, you may qualify for a low interest rate and good mortgage terms. Talking with a lender will help you understand how much house you can afford. If you need to work on your credit, renting may be the short term option for you.
Are you prepared for home ownership costs?
- Many people like renting because there are no responsibilities that come along with it. But with buying a home, you can expect routine maintenance, property taxes, insurance, home owner association fees, repairs, etc.
There are some additional benefits to buying a home including tax exemptions and income tax deductions. Over the course of years, you will probably come out ahead if you buy a home rather than renting one. However, if you have financial obstacles with purchasing now or with the cost of keeping up with home ownership, you may want to consider renting.
Whether you decide to rent or buy, let our experienced real estate agents help you with your search! We are knowledgeable and experienced with both rental properties and new home sales.