Owning a home is part of the American dream, or at least that is what we’ve all been told. And there are many great benefits to homeownership. But there can be drawbacks as well.
Depending on finances or lifestyle, renting might actually be a better choice for you.
Consider these factors when deciding if renting your home or buying one is the best option for your life.
Finances – Can You Afford To Buy A House?
Buying your home is a major purchase. You need to have the money for a down payment, closing costs, and incidentals. Also, consider your credit rating.
If your credit isn’t great, it may be wise to wait on purchasing a house. A good credit score can save you thousands of dollars in interest payments.
Once the home is purchased, you have to be able to pay for maintenance and repairs.
What Is The Market Like?
The housing market can be volatile. If it’s a “seller’s market” you should probably wait to buy that home. Prices can fluctuate wildly depending on the market.
In the past year, the pandemic has thrown the housing market for a loop, and homes are in high demand, pushing real estate prices higher.
Consider Your Lifestyle
For some, there is a simple reason to rent instead of owning a house, and that’s freedom.
It is easier to move when you don’t have to sell a home and renting means that there is a landlord involved who will be responsible for most of the house maintenance.
Also, if you are currently under a lot of stress, it might not be the best time to buy. Buying your home can bring its own set of challenges.
So if you are currently dealing with another major life stressor, renting may be the best bet.
Weighing the Pros and Cons of Renting Your Home
Owning a house can increase your equity, raise your credit score, help build wealth, and for some, give peace of mind that they own their home.
But the advantage of renting is that it is often the most cost-effective choice, saving the renter from repairs and maintenance costs, property taxes, and the costs of selling a home if you should decide to move.
If you do decide to rent, it is important to research quality property rentals before signing a lease.
Ultimately there is no right or wrong to owning versus renting, just whichever option works best for your life.
Investment Versus Freedom
Ultimately the decision of renting a home or buying it comes down to the pros of having an investment of a house, or the freedom of renting. Either option can be a good one, it just depends on your finances and lifestyle.
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