Is it better to own a home or to rent? As a real estate advisor, there really isn’t a straight answer. In fact, to find out what the right answer is for a particular client’s situation,I ask the following questions:
- What are your plans for the next 2-5 years? You need to think about your relationships and your job before you make the leap into homeownership. If you may be relocating in coming years, locking in a mortgage may not be the best option.
- How much are you paying in rent? If rent is, say, $1,600 a month, you have options out there where you would be paying the same amount of money in monthly mortgage and principal payments.
- What are the benefits of homeownership? If you own your home, you can write off some of your expenses when tax season comes around and, historically, home prices increase over time, so owning a home becomes a type of forced savings. With rates at historic lows, owning a home is more affordable than it usually is!
- What are the disadvantages of homeownership? When you become a homeowner, you are responsible when things break. If you’re not someone who is willing or able to fix things or find someone who will, homeownership may not be for you.
Whether you should buy or rent really depends on how you react to these questions. Buying is not for everyone, but I know there are many people out there unaware that it’s even an option.
If you want our help determining what might be best for you, or if you need real estate assistance of any kind, please don’t hesitate to reach out to us. We would love to hear from you!