Should I Rent or Buy My Next Home?
For a very long time now there has been a back-and-forth battle over which is better, renting or buying. Of course those in the know on both sides can make compelling arguments to sway even the most diehard of listeners. But why is this even a thing? Simple. Money. It all boils down to money and how people consider their money “well spent”. Often times you’ll hear that each and every payment you make in rent is money that will never help you further your financial standing. While when looked at in black and white, may seem true, it isn’t always the case.
Why Some Choose Renting
When it comes to where you live some people are very much interested in the ability to “try out” a certain area. If it is a fit, they can work on staying there longer, if it is not, they can move on and try to find another place to settle in that is more what they are seeking. There is also the fact that some people just aren’t in the financial place at the given moment to obtain the funds necessary to buy a new home. Renting a home allows you the time you may need to work on your credit in order to get that new dream home, all while providing a stable place for you and your family. Not to mention that your landlord is responsible for the time and cost of repairing and maintaining majority of the home, not you!
Home Ownership Fees / Costs That Do Not Help Equity
When you decide to become a homeowner it is almost like adding another child to your family. There are numerous aspects of the home that you must maintain and fix when they need repair, not to mention the costs involved in just obtaining the house.
Some of the one-time costs are origination fees, realtor fees, and closing costs. Origination fees cover paperwork, research, and calculations for your home loan, and are usually about 1% of the final home loan. Realtor fees can be pretty costly as well if you can’t get the seller to pay them for you. Closing costs range from 2-5% of the total home loan, and cover things like inspections, appraisals, fees, and tons more.
One-time costs aren’t the only things you have to prepare yourself for. There are also annual costs that add up over time and do nothing for your equity. These include mortgage interest, homeowner’s insurance, property taxes, utilities, mortgage insurance, possible condo or HOA fees and on top of that you are responsible for the cost of all maintenance and repairs.
How To Decide Which Is Right For You
When it comes to renting versus buying a home, there is only one group of people that can really tell you what is the right decision for you and that’s you and your family. Take the time to learn about the costs and fees associated with obtaining an home mortgage, also learn about your credit score and how to improve it in order to the best home possible. Outside of money and cost, think about where you and your family are in the current moment. Is settling in to just one location something that fits your current dynamic?
As you can see when it comes to deciding whether to buy or rent a new home, there no ‘one size fits all’ solution. At Buckeye Northwest Realty we have a large amount of rental properties you can choose to stay in while taking the time to make the best decision for you and your family. Contact us today to learn more about how we can help you with renting or buying your new home.
