To live in a home is a piece of the American Dream, but it takes work. There are a lot of deciding factors in residential residency. Plus, there are many homes on the market to choose from at this time. A lot of people are tired of renting an apartment and living the apartment lifestyle with limited space, nosy neighbors, and a less than friendly landlord. Let’s face it; the home market is an industry with possibilities, but is it better to rent a home or own one? The following user-friendly guide will help you decide if you should rent or buy.
Should I Rent Or Buy A Home
Buying a home takes responsibility and a lot of work. You have to secure financing, maintain a good credit score, and prepare for other homeowner related expenses. In fact, to secure financing you have to determine if you’re going to take out a loan or save your own money for a down payment. If you’re paying a smaller down payment, this means a higher monthly mortgage, private mortgage insurance costs, and interest rates. The home ownership market is steady declining because of the risk factors and associated costs. However, some people prefer owning a home over renting.
Renting a home is much like renting an apartment, but you have more space and a few more responsibilities. For example, if it’s not in your leasing agreement, you’ll be responsible for cutting the grass. However, like an apartment, as a home renter, you’ll have your repairs covered in your leasing agreement (check your lease for details) and the home owner will cover the cost. Can you imagine paying for a busted pipe? This is an expense that could cost you thousands of dollars in repairs including a complete air conditioner installation or a new roof. Thus, it appears that renting a house is the better alternative, but it depends solely on your circumstances.
If you can afford to own a home, it’s a great investment. In fact, it’s something you can pass on to your children, and you can build equity from your home. You can always cover the cost of your repairs with home owners insurance. Plus, you have the flexibility of missing a mortgage payment without immediately receiving an eviction notice. Renting a home is just like renting an apartment. While renting, your trading one leasing agreement for another. The choice is entirely up to you, but owning anything is always a better alternative to renting. Owning means: “What’s yours is yours and nobody can take it away from you” (except the bank if you fall to far behind on your mortgage payments).