While there are clearly benefits to buying a home, renting has some advantages that you should consider before you make a final decision to become a homeowner as a single parent.
While real estate is generally considered a good investment, there's no guaranteed profit. The value of your home depends on forces that you can’t control, like the job market, the supply of houses and zoning changes.
You can improve the worth of your home by taking care of it, and can increase your equity by paying down the mortgage balance, but if your home drops in value, you could lose money when you need to sell.
Renters benefit from the fact that the landlord is responsible for maintenance and repairs – both the cost and the hassle of hiring someone to take care of the property.
Buyers sometimes forget to budget for the inevitable cost of home repairs.
Flexibility to relocate
One of the biggest reasons to continue renting is the possibility that you may want to change jobs or transfer to a new location.
Or you may want to escape some awful new neighbors or decide you hate your commute.
Renters can more easily end a lease, while buyers need to sell their home or rent it out and become landlords themselves.
Fewer financial obligations
Of course, renters must pay rent, renter’s insurance and sometimes utility bills.
However, homeowners pay mortgage principal and interest, property taxes, homeowner’s insurance and utilities. There may also be homeowner’s association (HOA) fees and mortgage insurance.
In addition, single parent homeowners should budget about one percent of the property value each year for maintenance and repairs, or purchase a home warranty.
Excerpts - themortgagereports.com