As mortgages become harder to obtain over the years the big debate is whether it makes more financial sense to rent or buy. Before weighing the pros & cons why not ask yourself these questions:
What is the real estate market like in the city you plan on being in?
Take the time to talk to a professional about the current buying & rental market in the area.
How long do you expect to live there?
If you only have short term plans right now, renting is probably your best option financially. If you are ready to call the place home for as long as 10 years chances are buying is the best investment, one that can increase in value.
Do you have enough saved?
Buying a home requires more than just a down payment. As a buyer you will have additional fee's such as an inspector, lawyer fee's, moving costs & initial repairs or improvement's to the property.
Buying Pro's:
Buying is a sound investment: Home owners build equity over time.
Stability: Home ownership brings a sense of stability, belonging to a community & pride of ownership.
Creative Freedom: Decorate & renovate as you please.
Potential Rental Income: Even if not initial purpose, your property can turn into a source of income.
Buying Con's:
Potential Financial Loss: Buying & Selling in the wrong market can equate to financial loss.
Maintenance & Repairs: As a home owner you're responsible for all maintenance & repairs required.
Higher upfront costs: Home ownership requires more money upfront than renting.
Renting Pro's:
Maintenance & Repairs: Unlike owning renters are not responsible for maintenance or repair costs unless agreed to in rental agreement.
Easier to Relocate: If you are unsure of your long term plans rentals are often short term agreements.
Financial Stability: Your monthly costs often don't fluctuate throughout rental agreement especially if utilities are included.
Credit Requirements: Most landlords require credit checks however these are much less strict than mortgage requirement's
Renting Con's:
No Equity Being Built: Unless you are part taking in rent to own you are putting equity into some one else's mortgage.
Rent Increase's: Landlords have the ability to increase rent once current lease expires
Security: Landlords can evict tenant's (with adequate notice) and give no option to renew lease.
Make sure to take all aspects into consideration as both owning & renting have their benefits & disadvantages and the weighing factor is whether or not they fit your lifestyle & needs.
*Please note this blog is opinionated content and may differ from professional to professional* #RealEstate #renting #buying #owning