Should I buy, or should I rent It’s the classic real estate question. Sure, there are specific benefits that home owners gain over renters, but there are also some key problems brought on by home ownership. Here are 3 things to consider when deciding whether to rent or buy a home.
Consideration #1 Home Ownership Can Lock You Into a Tough Situation
Time was, home ownership was the only way to go if you wanted to move forward financially. It was a simple plan. Buy a home, live there for three to five years, and take some nice deductions on your taxes while your home equity increased. Come time to sell, you could make a nice little profit and move on to a bigger and better home.
This is not the case for many home owners today. Home values that were once increasing with regularity have plummeted, leaving a lot of homeowners to deal with larger than expected home mortgage balances. Many homeowners today even find that they owe more than their homes are currently worth – a very scary proposition for any potential home owner to face.
Consideration #2 Owning a Home Means Having to Maintain it Yourself
When you rent, you often take care of home maintenance issues by calling your landlord. However, homeowners face repairs… and repair bills all on their own. Add to this scenarios the fact that you still have to pay property taxes and Home owners Association (HOA) fees, and costs can creep up considerably. Renting keeps you from having to worry about such things. However, there are some up sides to owning your home.
Consideration #3 When the Market is Up, Home Ownership Can Really Pay Off
Home ownership can absolutely pay off if the housing market is working with rather than against you. Some market experts believe that the housing market has hit bottom in some areas of the country. For owners in these areas, the light at the end of the tunnel can be closer than it once was. Though it’s not likely that home values will skyrocket as they did during the early 2000s, these home owners will soon begin to get things under control and should feel the burden of their homes turn to a benefit.
At the end of the day, it’s all about time and math. Home value cycles will shift constantly over time, and it’s up to home owners to deal with things accordingly. If you have your finances in order, now may actually be a good time to buy a home. However, if you’re constantly on the move, or feel that the market is still a bit too shaky, then renting may very well be for you.
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