To buy or not to buy. It’s a question many people struggle with. And, it’s important to know if you truly want to own a home before you’re firmly entrenched in the homebuying process. Wondering if homeownership is right for you? Here are some things to consider about renting versus buying.
RENTING PROS
When budgeting for homeownership, you’ll have to factor in more than your monthly mortgage payments. Consider condo maintenance fees and repair expenses, too. Tenants don’t have to sweat those costs: they’re the owner’s responsibility.
Homeowners have the satisfaction of knowing their property is likely to increase in value over time, but for the short-term, their major asset is on lockdown. If you need to sell your home during the first few years of homeownership, you could lose money given the various costs involved, such as REALTOR® fees and possible fees for breaking a mortgage.
HOMEOWNERSHIP PROS
If you choose a home you can afford, the payoff can be great. When you make a mortgage payment each month, you build equity in a place of your own (unlike a rent payment). Equity is the difference between the value of the home and your outstanding mortgage. Assuming that your home continues to increase in value, then the longer you stay in your home (and the more payments you make), the more equity you’ll have.
As you build up equity in your current home and comfort level in being a homeowner, it may be easier to move up to another home in the future.
As a homeowner, you can decorate and renovate your home any way you like. You don’t have that luxury as a renter. Owning a home also gives you the pride of ownership. Your family may also feel stronger ties to your community
As a homeowner, you can decorate and renovate your home any way you like. You don’t have that luxury as a renter. Owning a home also gives you the pride of ownership. Your family may also feel stronger ties to your community
