The Difference Between Renting and Buying Houses
There are lot of reasons why most if not all people think that owning a house of their own is something that is very appealing. However, if you talk about finally owning a home, there are a number of factors that come into play. In becoming a home owner, you have to be financially stable as well as emotionally stable because you have to come up with plan that is time-constrained as well as fits your lifestyle and budget. Now, if you are not sure if you are buying or renting a house, then the below questions are what you can be asking yourself first.
What are the rental rates and prices around your vicinity?
When it comes to rental rates, it can be very easy to compare one rate from another. However, when it comes to buying homes, the story is different. In buying your own house, you will not only be paying your mortgage but also your insurance, property taxes, as well as some fees with the likes of condo or home owner association fees. In majority of cases, renting a house can be more expensive than buying one especially that mortgage rates have become low. Even though in your area the mortgage rates are high, you will be of more benefit financially if you buy a home because its value will keep on increasing as time progresses. With the equity increase in paying off home loans, you can really say that your median net worth is much higher as a home owner if you compare it to that of the non-home owner.
Are you seriously ready to have your own home?
Compared with buying a house, if you rent a house, then you are of benefit because you are not tied down to a lot of things. You can turn to online sites if you are looking for houses for rent and you will surely have a wide range of house for rent options that you can choose from but do not want to commit to. Now, if you will be buying your house, then things are quite different and hard. First, your options with houses for sale are limited. And this can be quite challenging if you want to live in a particular area that you will be happy to live in the coming years while also thinking about the cost that you will have to pay as well as the equity that you will build. Make sure to really take some time to think about the big picture: if you are really ready to be burdened by a huge obligation.
What exactly are your long-term plans?
It is true that you do not know what happens in your life in the near future. Nonetheless, if everything flows smoothly according to your plans, then you have to assess how buying or renting a house will be affecting your long-term plans.