Levi C. from Spring Lake asks…
Tina, I have always rented a home but have really been considering buying to truly have a place I can call my own. What are the benefits of buying over renting property?
Hi Levi, thank you for your question. The decision to buy versus rent is a personal one that really just depends on your current and intended lifestyle and what you are looking for. Different personal situations may dictate different choices, depending on the potential homeowner’s circumstances. So here are a few things I recommend you consider.
Buying a home is an investment that you are paying to own, once paid off it’s yours and you don’t have to pay for it any longer except taxes and insurance… and hopefully you gain a return on it if you own it long enough. In addition, the tax credits can help offset the cost of ownership. The freedom to design, paint walls, do construction and all kinds of creative things are possible when you own your home rather than if you are renting from someone who most likely would not allow such projects. You even have the option to rent out your home and gain a bit on income in doing so, which works well if you decide not to plant roots for the long term or something unexpected occurs and you need to relocate but don’t want to sell.
Renting also has some perks though like not having to worry about pricey possible home repairs, those issues are up to your landlord to handle, but the timeliness of necessary repairs may not be according to your schedule when they do occur. If you move frequently signing a short-term rental agreement can be of a benefit as it’s much easier to pick-up and go when you aren’t financially tied to a mortgage.
From a financial perspective the home buying market can be scary and sometimes fluctuating but one thing is for sure, it’s never permanent. I highly recommend you consider your lifestyle and finances before making any decision to buy or rent. Keeping your options open while trying to decide is important, I suggest speaking with a financial adviser to make sure you understand how each choice may be of impact to you; there are also some free online calculators to help you compare your financial possibilities of buying and renting. If you want to buy be sure you are keeping an eye on your financial situation and any major changes to it that may affect your credit, as well as save for that down-payment so you aren’t caught off-guard when working on contracts.
Buying a home is a satisfying and exciting time, the more you know and are prepared for the better the experience will be!