Buying Vs Renting
By Kurt Real Estate Nov 23, 2019
Do I buy or rent? This is the question that many potential buyers face in the anticipation of a move. While owning a home is an investment that will likely appreciate in value, there are many costs associated with buying a home that you can avoid by renting. However, with rent continually increasing, the cost of renting could be equivalent to, if not more than, a mortgage. So what do you do? How do you decide which is best for you?
When considering buying vs renting, start by asking yourself a few questions:
1. Are you looking to make an investment? Do you plan to stay in one location and do you want it to be an investment in your future?
2. What area do you live in and what trends have you noticed? This is somewhat of a follow-up question to #1 because the market will help you determine if this is a good investment or even an investment worth making.
3. Do the numbers make sense? As aforementioned, there are a lot of associated fees that go along with buying a home. Interest, property taxes, and insurance are just a few. If you’re only comparing the dollar value of your monthly rent to a monthly mortgage payment, you aren’t considering enough. These extra costs do add up, so before you switch into buying mode, be sure to have done your homework.
4. How old are you? Are you certain this is a place you plan to live long-term? The younger you are and the less commitments you have, the more susceptible you are to change. A job relocation or a relationship could cause a sudden change of course and you may want the flexibility to be able to make that adjustment.
At the end of the day, it really comes down to affordability and what’s best for you. If you don’t have the extra cash to cover the overhead demanded of you when buying, you may want to stick with renting until you have enough saved up that it doesn’t feel like you’re giving an arm and a leg to own something. If you are starting a family and looking to make an investment in your future, buying may be the right move for you. Ask yourself these questions and weigh all of your options.
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