Clients often ask what are the benefits to Buying vs Renting and there are benefits to both. Read on to discover the pluses and minus of both.
So, you’re thinking should I rent another year or should I buy a place? Well, there are pros and cons to buying a home or renting. Let’s start with the benefits of renting. If you ever have had a fear of commitment you can rest easy the obligation can be less than twelve months before you decide if you want to commit again or say thanks, I think it’s time for a change. Renting allows you some flexibility. If your job is relocating you to another city you can always find someone to take over your lease within a reasonable amount of time. Lastly, renting has fewer headaches in the long term, and you won’t have to deal with the burden of property taxes.
What are the benefits of buying a place you may wonder? For starters, space is all yours. You can decide what color to paint your kitchen, you can decide on what home improvements to make. You are building equity from the first day and you will gain more borrowing power which might come in handy at some time. As a homeowner, you receive tax benefits that you wouldn’t receive when renting. If you own your property for longer than five years you will notice your monthly payments will be cheaper than the renter paying for the same size in the same location. Also, when you buy your monthly payments is going towards something vs. when you rent your money is just going out the window. Your monthly payments will not go up and down which you often find when you rent. You build stability in your life and neighborhood which will help home values. When you own you have the ability to make decisions that are right for you and your home.
Keep in mind not everyone is in the position to buy, and some cities are just cheaper to rent vs. buying, but with interest rates historically low you really should weigh the pluses and minus and what works for you. There are great tools out there and resources one can tap into free of charge. If you know you like a particular neighborhood and can make at least a four to the five-year commitment you should look at buying. You might be saying I can’t put twenty percent down and what you should realize is you can put a lot less down and still get a good rate. Talking to a mortgage broker can help you decide if homeownership is something you can swing. You can talk about mortgage options and find out about rates, closing costs and other important information. You might have a few bumps in the road seeing home value go up and down in the short term, but in the long term you will see buying a home is a solid long-term investment.
Contact me anytime if you have questions about this blog or if you are thinking about entering the buying market. I can help you every step of the way. Feel Free to search properties through this site and getting market report data an so much more.
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