Owning a home is a major life decision. Therefore, some people may find it more feasible to rent. There are many differences between buying and renting a home. To determine which route is best for you, answer the questions below to assess the risk of each option.
How long do you plan to live there?
Buying a home is a huge investment. Most financial experts advise staying in a home for at least five years to avoid losing money. If you plan on staying in the area for less than five years, renting is probably the better option for you.
How stable is your job?
If you’re only planning to stay with your current employer temporarily or short-term before looking elsewhere, renting is the better option. However, if you’ve been at your current job for a while and you have no plans to leave, consider buying.
Are there factors that could influence you to relocate?
A main reason people choose to move back home is because of family. If you’re considering moving across the country when you have lived near your family for years, consider how you may feel when they aren’t as close. Homesickness may kick in and you might consider moving back. Significant others are another factor. If you’re working in Chicago and your significant other is in New York City, renting may be more up your alley until you decide to settle down.
How much can you afford?
If you’re living paycheck to paycheck, then renting may be more feasible. However, if you want to own a home, put money aside for unexpected costs of owning. Find a home in your budget and make small improvements with the money you saved.
What costs are associated with owning a home?
Many costs come with buying a home. The down payment, monthly mortgage payments, closing costs, property taxes, homeowner’s insurance and private mortgage insurance/mortgage insurance premium are costs you need to account for. After the papers are signed and the home is yours, there may be costs not accounted for. Consider any improvements or furnishings you may need before the move.
If you’re unsure of what the costs are associated with owning a home, ask our team of experts! If you have any questions regarding homeownership, please contact the Housing Buzz Team!