When it comes to renting a place or buying a home, everyone’s preferences and lifestyles are different. For some people, it is more ideal to rent a home or apartment because they can live closer to the downtown area near their work. Other people want to purchase a house because they plan to live in it for a long period of time as they want to have children.
As you are deciding on whether buying or renting is best for you, you have to take a look at your present finances and where you want to live, as well as your current and future lifestyle goals. Here are several things to consider to help narrow down your choice.
Renting a Home or an Apartment
Renting a home or apartment is desirable for people who are constantly on the move for work. They have more of a mobile lifestyle, and purchasing a home that they will hardly live in isn’t always desirable. In addition, rental prices may be lower than mortgage payments in certain locations. So a person can save money if their finances are currently tight. Another advantage to renting is that you don’t have to deal with the responsibility or costs when it comes to dealing with apartment repairs. These repairs, and costs, fall on the landlord.
Buying a Home
Buying a home becomes ideal when you are looking to build a retirement savings. With a home, you can begin to build equity that can be tapped into. You will also be able to will it to beneficiaries as part of your retirement estate.
In time, the mortgage payments will always be less than rental payments. Rent can go through a yearly increase while your mortgage payments stay the same rate. Also, you will be able to eventually pay off the mortgage and own your home outright. While you have to make all repairs yourself and pay for those costs, you also can make changes to your home, which is not allowed for a rental property. If the time comes to sell the house, you will be able to pocket the sales proceeds.
The choice of buying or renting a place will be based on a person’s circumstances. In the long run, you can build equity and make lower payments when purchasing a home. Consider all the advantages and disadvantages before making such a big decision.