Every year thousands of people debate whether or not they should buy a home or keep renting. In all honesty it is a really tough decision, and it is one that you’ll have to make on your own. If you are trying to decide whether it is time for you to buy, here are a few things that you need to consider:
Renting– Renting a home or apartment tends to carry a negative connotation with it, but the truth is that it can be a really smart option for those who aren’t ready to buy. If you are still in school, aren’t completely set in your career path, or simply aren’t ready to make the 30 year commitment of a mortgage then renting a home is a great option. One of the benefits of renting is that there is virtually no costs associated with maintenance and no time involved either. If something breaks in your rental all you have to do is call the landlord and he’ll be out to fix it, usually within a few hours.
In some cases, renting a home can actually be cheaper than buying. It usually takes about 5-6 years (depending on the cost of the home) for home ownership to be cheaper than renting. With that in mind, if you aren’t sure where you would like to live, or what you would like to do, then renting can be a great way to avoid extra living costs in the meantime.
Buying- For most, buying a home is the ultimate dream, and a symbol of status and security. A lot of people see buying a home as a great investment. For the most part real estate tends to appreciate over time which makes owning a home a smart choice for many. A lot of people like to know that they are building equity in their home and that they are will have something to show for all their payments over the years. Homes are also the top choice for most families because they want to give their kids a location that is constant so they can feel rooted in the community.
One of the downsides of buying a home is that there is more cost up front, and that you’ll be taking on a lot more responsibility. When something goes wrong with a house it is up to the homeowner to fix it which can mean dipping into savings and going over budget with your spending. In recent years, home prices have been extremely unstable which has made most people leery about purchasing a home. If you feel that you are set with your job and are in a location that you really love, then buying a home can be a really great decision.