Deciding whether you want to own or buy isn’t as simple as it seems. At Summit, we believe that everyone deserves to be a homeowner, but the reality is that it isn’t for everyone (at least right now). Depending on what stage you are at in life and what your dreams are, it will determine if you should rent or own. Below is a quick checklist to help you decide which one is right for you.
Should you rent?
Are you okay with instability?
Renters need to be okay with risk and instability. You have less financial commitment as a renter, but that means you are risking your housing stability. Your rent could increase or your owner could decide to sell the home.
Are you looking for short-term housing?
Renting allows you to live somewhere without having to worry about being “stuck”. This means you can try new areas or even cities without the worry and stress of selling a home. This type of freedom allows you to experiment with various types of housing, areas and living situations.
Are you worried about having to fix things?
Renting means that you don’t have to worry about fixing items around the house when they break. The cost of maintaining a home can be pricey. Renting makes sure that you aren’t stuck with a huge bill or spending your Saturdays repairing broken drains.
Should you own?
Housing payment stability
If you would like to control your monthly housing costs then owning is for you. As an owner, you pay the same mortgage every month, no matter how much the market increases. Often times rental agreements operate under a six month – yearly basis and if the housing market increases, your rent will too.
Homeownership helps people build wealth. When you rent, you are paying someone else’s mortgage. When you own a home, your equity (the market value of your home minus the mortgage loan amount) grows every time you make a payment and as the real estate market grows. Homeownership serves as both an investment vehicle and somewhere for your family to live.
Whether you have a two or four-legged friend on the way, owning can be cheaper than renting a large apartment or home. Owning a home allows you to make decisions for your family that renting can’t provide.
Control and freedom over your living space
Owning your home gives you greater control over your living space. You can pick what colors you want to paint your walls or makeover your kitchen. As a renter, you have restrictions on what you can do and sometimes what items you can store on your patio. Owning your home allows you to kick those restrictions to the curb.
If you are looking to stop renting and become a homeowner, click here and schedule your free home loan consultation. We will go over the necessary steps to getting started and turn your dreams into reality.