Rent vs Buy
Is It Time to Buy a Home?
If you have been renting, you might be wondering if it is time to consider buying a home. The home buying process can be scary, especially if you are not sure if you are ready or not. We have a few suggestions to help you decide whether home buying is right for you and whether it is the right time.
Advantages and Disadvantages of Renting and Buying
At some point in their lives, everyone struggles with the question of whether buying or renting a home is better. Your landlord would have you believe that renting is better because it is less expensive. You might not think that you have enough saved or that you do not qualify for homeownership yet.
Let's explore buying versus renting to help you decide which is right for you.
Cost of Repairs
One of the things that many first-time homebuyers do not consider when buying a home is the cost of ongoing repairs. When something breaks, many first-time homebuyers are not ready for the real cost of homeownership. When you are renting, all you have to do is call your landlord, and it costs you nothing out of pocket. You are also at your landlord's mercy as to how well the job is done and how quickly it gets done. If you are renting from a larger company, you might be far down the waiting list depending on the urgency of the repair.
Make It Yours
Making your home a space that you love is important. Perhaps you saw a great idea on the Internet for a kitchen you would love, but then, you remember you are renting, and those sorts of changes would not be allowed. One of the best parts of homeownership is that you can design your space the way you want it. You can create a space that makes you feel relaxed and welcome when you walk through the door. The freedom to design your dream is the best part of homeownership.
Monthly Costs
Many people are under the misconception that renting is cheaper than buying when it comes to the actual payment. The truth of the matter is that the monthly payments on a mortgage can be much less than you are paying in rent. Many people do not consider that their landlord is paying a certain amount for the mortgage, property taxes, and then they tack on a certain amount of profits that they want to receive as a profit.
Landlords buy properties wholesale, which means their mortgage is much less. You might be paying twice as much in rent as your landlord is paying for the mortgage. Also, if their costs go up, you can be assured of a rent increase, and there is nothing you can do about it.
Building Equity and Credit
Another reason to consider buying versus renting is that when you are renting, you are not building credit, and you are not building equity. You are giving your landlord money every month so that he can have all of the benefits of homeownership.
You might think that you are saving money because a mortgage will be too expensive, that when you start looking, you might be surprised at what you can afford in your price range.
Why Buy Now?
If this list has you in the mood for starting to look for your dream home, you might wonder if you are ready. First-time homebuyers have many advantages and programs that are available to help with the down payment, closing costs, and repairs. Many programs are also available that can allow you to buy a home with a surprisingly low down payment.
Our experts at Renovo Realty can help you decide if buying or renting is right for you. We know what it takes to buy a home, and we would be happy to take a look at your circumstances and let you know if you are ready. If not, we can give you a clear path to help you get there.
Contact us if you would like advice on whether it is the right time to buy your first home and gain all the advantages and privileges that go with it.
