To rent, or to buy? A common question that can be confusing and downright daunting. There are plenty of arguments out there that could influence your decision. But first, it’s important to ask
Renting Vs Buying
To rent, or to buy?
A common question that can be confusing and downright daunting. There are plenty of arguments out there that could influence your decision. But first, it’s important to ask yourself three important questions to help you make the buy-or-rent decision.
What is my current financial situation? Once you’ve calculated the costs of renting versus buying, make sure to also consider other upfront costs like a down payment, homeowners insurance, repairs, moving costs, and buying furniture.
How long are you planning to stay where you are? Your intended length of stay has a huge impact on whether it makes sense to buy or rent. The process of buying and selling a home involves a variety of different costs and factors. The longer you remain in a house the more time you have to spread out these costs. A general rule of thumb is if you are not planning on staying at home for more than three years, it may not be worth it.
Why do I want to buy? Do you want to start a family and want to have a stable place to live? Maybe you’re a dog owner who needs an affordable place with a yard to rent. Or perhaps you’re considering moving multiple times in your near future.
Once you’ve gone in-depth to understand your finances and future plans, you need to weigh your options. Consider the advantages of both buying and renting to determine which best fits your current lifestyle.
Every time you pay your mortgage, you become closer to full ownership. When you pay your rent you don’t have financial incentives and your money is already spent.
You have tax advantages. Many of the costs of owning a home, like property taxes, are tax-deductible. Similarly, you can count your mortgage interest as a deduction when you file your tax returns.
Owning a house gives you renovation freedom. As a homeowner, you can do whatever you’d like to your property. Redesign your kitchen or paint your bedroom, there is no landlord to tell you not to.
It’s easy to travel and relocate. Are you tired of the city you’re living in? Want to get Europe for a half a year on a whim? When you rent, you aren’t restricted to stay in the same location. Additionally, it’s much easier to get out of a lease compared to a mortgage.
You have fewer expenses. Typically, renter’s insurance is a lot less expensive than homeowner’s insurance. Combined with flood policy, higher utility bills, and property taxes, purchasing a home can cost a lot more.
You don’t have to pay for maintenance. If the light switch isn’t working or your pipes burst, you won’t have to call a plumber or make a trip to the hardware store. You can call your landlord and not have to worry about any surprise repair costs.
Ultimately, deciding to buy a house or rent isn’t an easy choice. That’s why it’s important to partner with a pro, like Jill Biggs Group, who can help you navigate your options. Feel free to reach out if you have any questions!
Jill Biggs leads the top-producing real estate team in Hudson County, N.J., a booming market located just outside of New York City. With more than a decade of experience serving Hoboken, Jersey City a....
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