Rent vs. buying

Thinking about whether to buy or rent a house is a hard decision and not one that should be taken lightly. The best advice anyone could possibly give you is to remember to do what’s best for you and your family. Additionally, determine how much of a monthly payment you can afford and how much money you can put down. Ask yourself, “Will this house be my forever home? Will my family grow bigger? Do I want to be responsible for repairs and maintenance of owning a home? Do I want to move around a lot?”

As you begin to think about renting vs. buying, I suggest comparing the local market rent and what the current mortgage rates are. This will give you an idea of what to expect with a rent or mortgage payment. For example, in our local area most monthly rent will cost you $800-1,000 for a 2-3 bedroom apartment or home. If you purchase a home, the principal and interest payment could be lower depending on your rate and down payment.

Make a list of pros and cons for renting and owning to give yourself a side-by-side comparison. Some examples could be:

Buying advantages:

  • Build equity and credit
  • Decorate your home to your liking
  • Possible tax benefits
  • No shared walls

Buying disadvantages:

  • Upfront money and paperwork
  • Possibility of losing money if the market value declines
  • Extra expenses
  • Responsible for repairs

Renting advantages:

  • Few upfront costs
  • Not responsible for repairs
  • No property tax bills

Renting disadvantages:

  • Can’t make it your own style
  • You’re not building any equity
  • Landlord can raise your rent or sell the property
  • Limited choices

If you’re still unsure what is best, or if you’re ready to begin the mortgage process, our SouthPoint Home Mortgage loan officers are here to assist you.

 

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Candy Hjerpe

Candy Hjerpe

Loan Service Representative - Real Estate | NMLS #671143