Confused between rent vs. buy decision? Both have some upsides and downsides. The answer depends on many factors like finance, your long-term plans and real estate market in your area. Here is a list of question that you must consider while making your decision.
1- How much saving do you have and what can you afford?
2- How long do you want to stay in the home?
3- Can you take the responsibilities for repairs/alternations?
4- Do you want to be stable or flexible to move if needed?
5- What are your financial, career and family goals?
Renting vs. buying a home: Calculating the Costs
The first important factor is the costs that you have to pay. If you rent a house the monthly cost is fixed. Your monthly rent may or may not include utilities like electricity, gas, cable or internet. In many cases, most leases require the first month’s rent, a security deposit equal to one month’s rent in advance. And keep in mind that the landlord can increase rent when the lease duration ends
But the plus point about renting is that you don’t have to worry about any fixing or repair issues. For example, your landlord handles the issues of a leaky roof, burst pipe etc.
You can take the help of rent vs. buy calculator to determine whether renting or buying is good for you
Should you buy or rent? Below are some pros and cons of both buying and renting.
- Increase your assets
- Build equity and credit.
- You don’t have to answer any landlord
- More stability (for schools, colleges)
- You can do any improvement or upgrade as you like.
- Connected to your community/neighborhood.
- Possible tax benefits
- Property tax bills.
- Could lose money if the value goes down.
- The responsibility for repairs, improvements.
- It requires substantial money to buy and paperwork.
- Extra expenses besides mortgage payments
- Freedom to move
- Don’t need to worry about maintenance/repairs
- Fewer upfront costs and paperwork
- Falling home values do not harm you
- You don’t have to pay any property tax bills
- The landlord can ask for more rent or sell the property at any time
- Might have to move many times
- Don’t build equity
- No tax benefits
- You can’t modify the home according to your choice
- Choices are limited for your desired design
Buying vs. renting a home is a tough decision. But it all depends on your financial state and your area where you are looking for a home. Take your time to analyze every point even if its minor, or you can take the help of an advisor or consult an agent. Because a house is a primary thing and you spend money on it so the decision should be near to perfection.…