No matter your stage of life, to rent or buy a home can come into question. There are multiple factors that come in to play when deciding between the two.
Financing: In order to purchase a home you have to either qualify for a home loan, or pay cash. If you can pay cash, this is a non-issue. However, if you have no credit or poor credit, obtaining financing can be a challenge. If you are prepared with an adequate down payment and can secure a home loan you are well on your way. However, lack of financing [or cash] can leave you with no other option than to rent. No sweat – this just gives you extra time and opportunity to save up for that down payment! Sometimes, being a good tenant can even help develop your credit rating.
Maintenance: The pros and cons to Rent or Buy A Home. Home maintenance is often the deciding factor in the “to buy or not to buy” ownership vs. rental debate. While some are up for the task, other are not. Of course, tenancy comes with its own level of maintenance which is likely to vary according to where you live. For instance, a person who rents a condo or an apartment is probably not responsible for mowing the lawn, whereas a single family home renter is. In either case, both tenants should take responsibly for changing light bulbs, smoke detector batteries, HVAC filters, etc. If the furnace goes out in the middle of the night a renter calls their landlord, who will facilitate the repair and take care of the associated expenses. A home owner would have to contend with this on his or her own.
Stability/Lifestyle: Some people enjoy the freedom that may come with renting rather than buying a home. At the end of your lease term you have the option to pack your belongings and move across town, or across the country. This is not to suggest you have no freedom with home ownership, but the ease in which you can spread your wings is apt to vary. Chances are likely you have signed a thirty year mortgage; do you sell – if so, how fast will it sell? Can you afford to pay your mortgage and pay rent, and utilities, and …? Are you subject to relocation by your employer? Are you a free spirit? Do you have a preference for roots and stability?
Asset management: This is a classic example of what you are likely to hear from family and friends at the mere mention of indecisiveness in the rent or buy a home battle; “You’re throwing your money away when you pay rent.” While this may be common thinking, it is not necessarily true. Sure, when you buy a home you have an asset. Every payment you make develops equity and in just thirty short years you will own that home. Yes, it is the American dream! And yes, if you pay rent for thirty years, you have significantly contributed to someone else’s dream coming true. However, value is in the eye of the beholder. If you never had to break a sweat mowing the lawn, or pay $5,000 for a new HVAC system, or homeowners insurance (although you should definitely have renters insurance) it may be well worth it.
Regardless of your financial position, aptitude for performing home maintenance, your preference of roots or wings, or even peer pressure, the decision to rent or buy a home is a personal one. Do what is right for you.
Call us Today at 417-337-RENT (7368) and let our leasing professionals provide you with all the tools you need to make your move easier. Thousand Hills Realty…”LEADING THE WAY HOME!”