When faced with the decision on whether or not to buy a home, there is no clear answer which one is better. There are three things that every person should consider when determining which route to go: location, financial situation, and the long-term and short-term benefits and downfalls of each.
In making the choice between renting and buying, one of the most important aspects is location. Buying a home in a major metropolitan city, like San Diego or New York City, will be a significantly more expensive investment than buying a home in the suburbs or in a rural town. Regardless of whether a person is buying or renting, shoppers can expect to pay more per square foot in certain locations in addition to a higher cost of living. Do research online to compare costs of living by region or city ahead of time, so you can feel confident in your decision and financial planning.
Speaking of the cost, it is especially important for each person involved to consider his or her financial situation when deciding whether or not to buy a home. Renting is typically less expensive than owning a home on a month-to-month basis. However, homeowners can reap some benefits that renters aren’t entitled to. Although it could take anywhere from 10 to 30 years, at some point, homeowners will be mortgage-free. Homeowners also have the option to leverage the equity in their home to take out a home equity loan or line of credit. This could be especially useful when wanting to make renovations to potentially increase the home’s value or pay for a child’s education or for use in financial emergencies.
Aside from the benefits and downfalls already discussed, some consider one of the biggest advantages to owning a home is being able to customize and upgrade the home to follow personal tastes and trends and cater to unique needs. On the other hand, one of the biggest benefits to renting is the ability to call the landlord when something goes wrong. Many renters like the peace of mind, knowing that the landlord is typically financially responsible for any issues that arise on the home.
The choice between buying and renting is never easy. Take the time you need to consider your options and engage the help of trusted advisors along the way. Should any questions arise in regard to the benefits of homeownership, we invite you to to contact one of our mortgage loan officers today.
‹ Back to the Blog Overview