There are a lot of things to consider when trying to make the important decision of whether or not to buy a home. Are you going to take the plunge and commit yourself to a large, length mortgage? Or are you going to stick with renting and accept everything that comes with it? There is no easy answer here, and both sides of the equation have their pros and cons.
Let’s look at a few key points which may help you make a decision.
The Price of Security
It is expensive to own a home. There is really no debate on that point, when you think about everything that comes with home ownership. You’ll need to start with a down payment, and it won’t get any easier as you consider your monthly mortgage, property taxes, maintenance and repair, etc.
So, what do you get in exchange for your investment? Security, for one thing. This is your home, and you won’t be told to move (unless you stop paying the mortgage, of course). As a renter, you may need to move when the lease is up and the landlord decides to go in another direction. That doesn’t happen to homeowners. If you value that peace of mind, home ownership will be an attractive option.
Renting Offers Flexibility
On the other side of the coin, some people value the flexibility that comes with renting. Instead of being tied to a single property in a specific location, you will have the ability to move at will when your lease expires. For a married couple with kids, this may not be a selling point. For a single person who likes to travel and explore, however, it could be a major boost.
Potential for Equity
There are no guarantees attached to your investment in a home, but there is a good possibility that you’ll end up with a significant amount of equity after years have gone by. In fact, if you live in your home long enough, you may be able to pay off the mortgage and own the property free and clear. That would make it quite a useful asset, and something that could potentially help fund your retirement or pay for other needs. Quite obviously, there is no such possibility of developing equity when you choose to rent.
Should you rent or buy? That’s a decision that only you can make. These two options still exist for a reason – they are both viable, and they are both worth careful consideration. Also, you could get involved with real estate using fix and flip loans to hopefully turn a profit in short order. There are many ways you can approach real estate, so think it through carefully before acting. Good luck!