Rent vs Buying: Which Is Right for You?

Deciding to rent or buy is a big decision. If you’re not prepared for the costs of owning a home, you won’t understand the rewards. Making the decision on your own isn’t necessary when you could work with an experienced local agent for no cost.

Searching for the perfect home on your own is a challenge. Whether you’re deciding to rent or buy, there’s a perfect time to search for a home and prices vary from zip code to zip code. Knowing when and where to search is a challenge that few homeowners feel prepared to overcome on their own.

While you should work with an experienced agent during your search, here is some preliminary information to help you decide whether to rent vs buy.

Deciding to Buy Rather Than Rent

When deciding to rent or buy, you have to think about your own personal wealth journey. Buying a home isn’t for everyone, but renting might not meet your lifelong financial goals either.

Every month that you pay rent, your money goes into the pockets of your landlord. When you make a mortgage payment, your money isn’t exactly going into a savings account but once the home is paid off, it’s an asset you own. That home will appreciate over time and become a source for wealth-building.

Owning a home allows for other loan opportunities as well. You can use the equity in your home to help build a small business by lending against how much of the home you actually own. If you have some home repairs to do but no cash to pay for them, you can refinance your home or get a home equity loan and get the money you need.

Over time, the cost of homes appreciate, property taxes go up, and so does the cost of rent. However, that rent money you pay won’t afford you very much but a happier landlord.

Housing Market Outlook

Home values have taken a massive jump in the world of real estate since the pandemic first hit. If you’re thinking of buying a home, now might be the time. However, this increase in prices could leap ahead of rental costs, causing the disparity between the two to even out.

The point of all of these predictions is that it’s better that you invest now rather than wait until later. 

You Need a Guide to Navigate the Market

There’s no need to navigate the real estate market all on your own. If you want to meet your financial goals while finding a home that you can afford, you need to ensure that you team up with an experienced local agent.

Since the seller is typically responsible for paying the commission for your agent, there’s no good reason to navigate the market on your own. 

Resource: www.realtor.com