Should I buy or should I rent?
One of the most important questions out there. Is buying a home a better option than ranting one? The answer depends on several factors and overall your own desire, but often enough people who buy a home get the better deal financially speaking at least. True, money is not always the concern so here is a list of things worth considering while making a decision.
One main advantage of renting a home is that it has a flexible contract that allows you to not be tied up in a place for a large amount of time. You can sign a contract for a small period of time and when that contract is done, you can either make a new contract or find a new place. Maybe you just finished collage, not having any work set in mind or working somewhere that needs you to move around often will make renting attractive for you.
By buying a house though you get that certain stability. Regardless of what might happen, you have some certainty that you always have a place to go back to. Not only that, but moving from place to place is often tiring and a bothersome experience. Not only that, but the rent will not just go up without a notice.
If you got yourself a well built and cozy house, a place that you can call “home” with no hesitation, there is also a great deal of responsibility to keep that building intact. This can become often annoying, because unlike rents, if something ever breaks down you can’t just call the landlord and let him take care of the problem. Now that problem is your problem, and if you are not a handyman then you will have to call a professional. On the contrary, there is also freedom of choice. If you manage to get a rented home, that pink wallpaper with flowers in your boy’s bedroom can become a large issue. Why? Because the landlord might now allow you to change it. Old and rotten furniture, horrible paint, mold colored carpet, stuff that your landlord might not allow you to change it.
If you want to buy a home you need to have money for it, or at least a down payment which is often a large sum. a FHA loan which requires a small down payment is on the table. But for it, you will have to pay some mortgage insurance which adds to the monthly costs.
If you want to save money, staying in a rented home is the better call. Paying for the monthly loan installments and having some extra money just in case something breaks is sometimes a lot to ask for, financially speaking.
Once you have sorted out what you want from your home when considering if buying or renting is the better option, you have to think about the cost. Overall, it’s a bit cheaper to pay a mortgage payment monthly than to pay some rent monthly. The prices of rents are going up and are also influenced by inflation. If you can keep up with them, it is a decent idea. Your call if it is indeed worth it or not.
Costs over time.
In the long run, a mortgage will get progressively cheaper. Logic would dictate that if you plan to stay put for a long time, buying is a better option. Moving from place to place can become expensive. Paying rent when you retired? Something that is often not desired.