If you’re fresh to the housing market and looking for a home, you may be wondering whether you should rent or buy. It’s important to consider all of the responsibilities that come with each, and whether or not you have any regard for your future, including your financial health.
When you rent a home as a place to live, remember that you’re going to be under the decisions of a landlord. There are often restrictions as to what you can do when it comes to how you want your rented property to look. In most cases, you won’t be allowed to paint walls, remodel rooms, or even change the landscaping without first getting your landlords approval.
You’re also only making an investment for the now. The monthly rent that you pay to live in your home isn’t something that will come back to you, though it will be an investment for the landlord. You’ll also see your rent generally increase on a yearly basis. Regardless of how much you pay for rent, once that money is out of your hands, it’s not the kind of thing that you’ll ever see again, no matter how long that you actually occupy the home that you’re renting.
Buying your home is a whole new ball game when compared to renting. When you buy, you’re not only making an investment for a place to live, you’re making an investment for your future. Contrary to most other investments people make in their lives, homes are almost guaranteed to go up in value over the course of their lifespan. While markets fluctuate in shorter periods of time, buying a home and owning it for several years will usually result in a successful financial move when it comes time to sell.
Additionally, when you own your home, you have the right to make any and all necessary repairs to help increase the home’s value. Whether these fixes and upgrades are mandatory or not, you’ll usually have a little more of an open mind and a not so strict wallet, since you know you’ll be making money back on the home when you sell.
Finally, buying a home will always leave you with option to become the landlord for someone else who is renting. If you feel that the home is no longer suitable for you to live in and you put it on the market, you could see yourself making about 8% on top of what your monthly mortgage is, which could be used to put towards the next home you own. This is a great option, especially when your home is located in the middle of a buyer’s market and the timing on selling the home isn’t the best thing for you to do.
In the end, it’s fairly clear what your best option is, but make sure to consider where other factors in your life, such as work and family will take you before you decide to choose a spot that’s right for you.