Everyone needs a roof over their heads. The only question is how you are going to pay for it. Both renting and buying involve making a rather large payment to the owner of the home each month. Would you rather pay that money to a landlord or to a bank? Here are some things you might want to consider when making that decision.
Things To Consider When Renting A Home
Renting a home is great for many reasons. The best reason to rent a home is because you aren’t responsible for maintaining the home. If something breaks, the landlord has to fix it. Landscaping, snow removal and trash pickup is generally covered in the lease agreement.
However, do not assume that all of these things will be taken care. It may ultimately be up to you to mow the grass and shovel the driveway. In this case, it might not be beneficial to rent a home. It might be easier to look into an apartment complex if you cannot afford to buy a home instead of renting one.
Another good reason to rent a home instead of buying one is the ease of getting housing. Getting a mortgage is a long process that involves a lot of paperwork. You need to have a certain level of savings, income and a good enough credit score.
If you don’t have all three, you are probably going to be renting for the next 12 months. The good news about renting a home is that you only need to pass a credit check in most cases. Your landlord just wants his place rented as soon as possible.
Things To Consider If You Want To Buy A Home
Purchasing a home gives you some sense of control over your property. You can paint the walls whatever color you want, you can have pets and there are no noise complaints. You are king of your castle as soon as you sign the closing papers.
Since you own your home, you can change it to fit your style. Those who are good with their hands will enjoy being able to renovate the kitchen or put in a new bathroom. These changes may come in handy if you are looking to improve the value of the home. Potential tenants would pay more to live in a home that has modern amenities in it.
The ability to bring in tenants is a huge advantage to buying a home. Tenants will pay you money each month that will offset some of your mortgage. There is nothing better than living in your home for less than what you owe.
Another major advantage to buying a home is the fact that you can deduct mortgage interest from your taxes. This can significantly lower your tax bill each year. While you are gaining a tax advantage, your home is also becoming a source of wealth for you. Each mortgage payment you make builds equity in your asset.
Which Decision Is Best For You
Ultimately, you have to make a decision that is best for you. If you can afford to buy a home, you should certainly go for it. Mortgage rates are lower than they will ever be again in your lifetime. Those who are looking to grow their families should certainly look into buying a home as soon as possible.
However, you might consider renting if you don’t want to deal with the maintenance and upkeep of a home. If you cannot afford a mortgage right now, renting a home is a great way to live in a house until you can afford a mortgage. Let the fact that your rental payment is helping someone else retire be your motivation to save your money over the next year.
Buying a home is certainly something you want to look into. You save on your taxes, have a place of your own and you are building equity each month. Mortgage rates are making it possible to pay less for a mortgage than you would for a rental payment. That should certainly pique your curiosity when it comes to buying a home instead of renting one.