Buying a Home vs. Renting—Which Is Better for You?
If you’re not sure whether you should continue to rent or take the plunge and buy a home, there are four questions you can ask yourself to help you decide.
First, can you afford it? What kind of money do you make and what debt obligations do you have? If you’re not sure, we have some really great lenders you can speak with to figure out if purchasing a home is reasonable for you.
Second, is it better for you to rent or buy? This depends heavily on your personal circumstances. With home prices where they are in our area, if you make enough to purchase a home you probably need a tax write-off—and there are many tax advantages to owning a home. Also, consider what the rental market is doing. Right now, the rental market is hot, so you might pay just as much to rent a home as you would to purchase one. Instead of paying someone else’s mortgage, why not pay your own?
Third, how long are you willing to stay put? It usually takes homeowners three to five years before they can sell and turn a profit. The reason for this is when you purchase a home, you’ll pay your fair share of closing costs and it usually takes about three to five years of appreciation to cover those costs while still having some of that appreciation left over. Are you willing to stay the three-to-five-year period in order to make that stay worth it?
Finally, are you ready for the responsibility? There is a lot of responsibility that comes along with being a homeowner—lots of maintenance and upkeep. Some would just prefer to be able to call a landlord to fix any issues that arise. Others are up for the challenge.
The answers to these questions should make your choice clearer. If you have any questions about the home buying process or what’s happening in our market, you’re welcome to give me a call, shoot me a text, or send me an email. I’d love to help you.