When it comes to buying a home or renting it is always best to take the time to weigh all the options and to choose the one that works best for you. What might seem like the best overall solution may not be what is best and taking that extra time for consideration can really make a difference.
Is Renting or Buying Better? This is not a cut and dry question, but rather, one that takes quite a bit of extra thought to properly determine. Say you find a home that has a rent of $1,000 per month. This is a price you can comfortably pay and have a little wiggle room. This might make some think that they can afford to buy but buying a home comes with a ton of other costs that you might not think of.
Though a mortgage payment each month may seem comparable to rent payment, they are not the same. With a home you own you also have to pay property taxes, you have to pay for your own repairs and replacements of items that are damaged or destroyed, and you have to take care of yard maintenance as well. This means that even though you may be paying the same in mortgage payments as you are in rent, you are going to have other fees that you have to pay as well on top of that mortgage payment.
Another thing to consider is that with a rental property is that rentals are not always in the areas that you would prefer. Many rentals are not in neighborhoods or more affluent areas. In most cases, rental properties are in more affordable areas and there are often lots of rental properties close together. With a rental, you also have the added fact that if you want to do something to the yard like install a pool you have to first get approval from your landlord to make sure the alterations are approved.
When it comes to deciding if buying or renting is better it is also helpful to get the advice of an agent like Paul Daneshrad who can help you understand the basics of buying, renting, and anything in between. Your perfect home is waiting, you just have to take the time to make up your mind about what is right for you and what is going to work best.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin