Have you been toying with the idea of buying a home? Depending on your stage of life, you may be considering whether renting or buying is the right answer. With low mortgage rates and a market with low inventory, it can be tempting to jump into the housing market. Before you make a hasty decision, ask yourself these four questions to help you make the best move for you and your family.
Are You Planning on Relocating?
Does your job require you to move often? Do you find yourself wanting to explore different cities before you commit to an area? If so, you may be more suited for renting. Renting gives you more flexibility to move quickly. As a homeowner, you will have to go through the process of hiring an agent and selling your home.
What Does Your Budget Allow?
As a renter, you should expect your rent to increase annually. With homeownership, you have more consistency with what you can expect. Your payments will be based on the life of your loan. On the other hand, homeownership requires many additional expenses. Unlike renting, which will require you to have renter’s insurance, homeownership will require you to have not only homeowner’s insurance and property taxes but possibly flood insurance and homeowner’s association HOA fees.
Do You Want the Responsibilities for Maintenance?
A perk of being a homeowner is the ability to make the upgrades you want to see in your home. Renting doesn’t allow for alterations. Homeowners can paint or decorate freely. On the other hand, with those freedoms comes the responsibility when maintenance is needed. That leaky pipe won’t fix itself. Homeowners will have to manage repairs on their own. Renters have the freedom to call a landlord who will be required to manage repairs.
Do You Want Tax Advantages?
Homeowners have the advantage of certain tax deductions. As a renter, your landlord reaps all of the benefits that come with building equity and a rise in property value.
The age-old question of whether to rent vs. buy isn’t always so cut and dry. Many factors come into the equation, such as your finances, the amount you have in savings, family and job goals, and market conditions. Check out our rent vs. buy calculator to get a better idea of what may be right for you. Connect with one of our 7,000 agents today to help you weigh your options. For local listings you can trust, start with REIN.com.
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