Should you buy or rent a home?
The answer often depends on your finances and plans.
What’s the best way to spend your money? How long are you planning to stay in your home? Are you changing jobs or possibly moving?
Below are a few factors to consider when deciding if you should rent or own.
Perks of Home Ownership:
- Your payments build equity.
- You may enjoy tax benefits.
- You build credit.
- Overall, most home values increase over time, which increases the amount of equity and your return on investment when you sell your house.
- Once you pay the mortgage off, the home is all yours.
Items to consider when buying:
- The down payment amount.
- Closing costs, insurance, and taxes.
- Monthly utilities.
- Ongoing home repairs – such as the water heater, plumbing, and appliances.
Renting is another option.
Advantages include:
- Your initial cash outlay will be smaller – often a deposit of a month’s rent.
- The money you save can be used for other investments.
- The landlord is responsible for repairs of things like plumbing or electrical.
- It’s easier to move quickly if you change or lose your job.
Drawbacks include:
- You’ll never own your home, no matter how many payments you make.
- There are no tax advantages.
- Rent could rise or your landlord could sell the property.
Ultimately, whether you choose to buy or rent a house will depend on your personal circumstances and priorities. It is important to carefully consider the costs and benefits of both options before making a decision. As always, our experienced mortgage team is right here to help you understand your options. Learn more about our mortgage solutions or reach out to one of our mortgage lenders today.
