Being able to purchase a home is part of the American dream. To make this dream a reality, you must have a stable lifestyle that includes job security, excellent credit, and a positive financial outlook. Having the liberty to choose this option is wonderful, but is the decision to buy the best choice? Let’s look at the pros and cons.
Mortgage Vs. Rent
Does the commitment of a home mortgage loan payment make you nervous? If the idea of paying rent sounds easier to you, consider that you are already paying a mortgage. The difference is that you are paying the mortgage for the person who currently owns the house you are renting. They are getting the benefits that come with increased equity and positive credit reporting.
If you choose a fixed-rate mortgage loan, you will know exactly how much you are paying each month for a mortgage payment. Knowing the exact amount is a huge win for budgeting and allows you to make long-term plans. When you’re renting, you risk the chance of having your rent increase without warning. In fact, a landlord can raise the rent as often as they see fit. You can either choose to abide by the rent increase or move to another residence. Either way, it costs you more money.
Stay Vs. Roam
It’s important to consider the length of time you plan to remain in the home you purchase. If you intend to live in the home and build equity for several years, buying could be the best option. If you know that your job will have you moving within a short time, you may want to consider renting. Still, it may be beneficial to consider buying even if your stay in the community will be short. If you’re interested in investment property, you can rent to house to someone else once you move to another location. Becoming a landlord has its set of challenges. Be prepared if you choose this option.
Putting down roots and deciding to stay in a community has benefits. If you have children to consider, you can rest assured that they will get to attend the same schools as they grow up and prepare for college. You’ll develop ties within the community and with neighbors that add to your quality of living. Moving from place to place can sound like an adventure, but it can prove tiresome and cause stress within your household.
Your Way Vs. Their Way
You have the freedom to create the home of your dreams when you own a house. If you want to paint the walls bright yellow and pink, you can! You can turn the entire living room into a jungle paradise, convert the garage into an entertainment zone, or have as many pets as the law allows. When you are renting, you don’t have this kind of creative freedom. You are bound by the limits of your lease and the wishes of the homeowner. It’s highly unlikely they will allow you to make bold adjustments to color or add anything structural.
Want to create a comfortable living space for an aging relative? You can do that if you own your house. There is no limit on the number of people or the length of their stay. When you rent a home, you abide by the terms that often include a time limit on anyone staying at your house. The owner can raise the rent or evict you if you don’t comply.
Serious consideration is needed when choosing to buy or rent a home. Be prepared for the long-term commitment that comes with owning a home and enjoy the benefits.
Your real estate agent is the best source of information about the local community and real estate topics. Give the Robert Hussey Group a call today at 256-604-9750 to learn more about local areas, discuss selling a house, or tour available homes for sale.