So, it’s the age old question that I feel most renters have, should I continue to rent or should I buy a home? The truth of the matter is, there is no simple answer because there are many factors to consider. So before you decide to make the leap from being a renter to becoming a home owner here are three that you may not have thought about.
- How long do you plan to live in the location? If you are planning to stay in the area that you are living for two years or more purchasing a home has benefits. Over the time that you live in your home you would have a predictable monthly mortgage payment (so long as you choose a fixed rate mortgage) vs. renting/leasing where your landlord could raise your payment at each lease renewal. And there’s the added bonus that the monthly payment you make to the mortgage company each month is helping you build equity in a home you own rather than into your landlords pocket.
- Buying a home is more costly up front due to the down payment and closing costs (which by the way are two separate things). However, according to RealtyTrac buying a home is typically the more affordable choice even after that initial downpayment and closing cost investment.
- When you purchase a home, it’s yours. There’s no worry that you may have to move at the end of your lease, and you’re able to make changes to the home such as paint color on the walls. In addition you will not have to worry about hanging decor on the walls, and you won’t have to share a wall with someone else unless you purchase a condo or townhome.
If the benefits of home ownership sound appealing I’d love to talk with you about how to make it happen.