You have to live somewhere. So the big question is whether you should rent or buy a home. There are pros and cons to each option, and there are quite a few factors that should be taken into consideration before making a decision. If it is your dream to own a home, chances are you’d like to purchase one sooner rather than later. But if you are a person who does not want all of the responsibilities that go along with home ownership (and you’re not sure if you can come up with a down payment), renting might be the best option for you – at least temporarily.
Does it Make More Sense to Rent or Buy?
Everyone’s situation is different, so there is not a clear-cut answer to this question that will suit everyone. There are lots of advantages to homeownership. For example, when you purchase a home – even when you buy it with a mortgage – the home is something that you can say is yours. Eventually, you will have the mortgage paid in full. When that happens, you will have an asset that is worth a significant amount of money. On the other hand, renting allows you to keep your money more liquid. Also, instead of investing in a house, you can invest in the stock market. Depending on the year, the stock market may provide you with a rate of return that is higher than any increase in the value of your home.
Other Pros and Cons of Homeownership and Renting
When you own a home, you are responsible for its upkeep. If something breaks, you must fix it yourself or pay someone else to fix it. But along with these responsibilities, you also have peace of mind knowing that you have a place to live for years to come. You won’t have to move unless you want to, and you can personalize the home any way you choose. With a rental, you are typically not responsible for repairs. If something breaks, your landlord is responsible for fixing it at no cost to you. Additionally, renting allows you the freedom to move to another home or city at the end of your lease.
Before deciding whether homeownership is right for you, it’s important to weigh the pros and cons listed above. In addition, you must evaluate your current financial situation and also where you think you will stand from a financial standpoint in 5, 10, and 15 or more years. Right now may be a good time for you to buy, but it may also make sense to wait. If you’d like to speak with a professional who has helped many people make this important decision, call The Home Loan Arranger today at (303) 862-4742. You will be provided with professional guidance to help you determine if you should pursue home ownership or if you should look for a rental that will meet your needs. If home ownership is the avenue you wish to pursue, you will be provided with options on how to finance a home.