The Difference Between Renting and Buying Houses
Just the mere thought of finally having a place that you can call your own has appealed to a number of people for a lot of reasons. However, if you talk about finally owning a home, there are a number of factors that come into play. If you want to have a house of your own, you should not just be stable financially but also you should be emotionally mature when it comes to creating timely plans that best suit your budget and lifestyle. Now, if you are confused if you are either renting or buying a house, then here are some questions that you can try asking yourself.
What are the rental rates and prices within your vicinity?
If you talk about rental rates, comparing one from another is actually very easy to do. On the other hand, in buying homes, it is not quite the same. If you buy a house then you not only think of your mortgage payments but also your insurance, property taxes, and some fees such as 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. Though your area may not have as attractive mortgage rates as you want, you have to remember that buying your own home gives you more financial benefits in the long run. Since equity all the more increases as you regularly pay your home loan, the home owner in comparison to the non-home owner has been shown to have significantly increased median net worth.
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 talk about buying, things can be quite challenging. First, the options of houses that you can buy are only a few. And this can be a difficult matter most especially when you are after living in a house where you find the area worthy o living happily in the years to come while considering its price as well as the equity you will be building. Ensure to spend some time thinking if you really want to be tied down with such a big financial obligation that will be very hard to get out of easily.
What plans do you have in the next five years?
It is true that you cannot predict what will happen to you, especially your 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.