The rent or buy debate. It’s a battle many people have with themselves, with the pride of home ownership in one corner of the ring and the ease of renting in the other.
Pros of buying include "owning" a property. And then there’s the equity, or value of ownership once the property is paid off, and the market value of the home appreciates.
Big advantages of renting include avoiding costs that come with home ownership and maintenance.
The rent versus buy conversation takes place often, with many people.
What you are paying now and what you can afford? Right now, homes are priced aggressively and rates are low. However, cash available for a down payment is always a question.
It’s important to compare the cost of monthly rent to the cost of a monthly mortgage payment. But make sure you have all of the numbers.
There’s a cost to ownership. Not just closing costs, but upkeep, major repairs like water heater, air conditioner, and appliances. Home buyers should seek a one-year home warranty to protect their pocketbooks from those unexpected expenses during the first year.
Also, keep in mind the length of time you plan to be in the area. Generally, if you are going to live in a community for 5 years or less, renting is the better option.
Another important question to ask yourself: Can you handle the stress? Many people weigh financial aspects of buying or renting, but don’t consider the financial stress of such a large expenditure.