Once upon a time, the staple of the American Dream was owning your home. But times and dreams are changing. Nowadays, there are more people living in rented homes than any time in the last 50 years, a Pew Research Center study shows.
But which option is right for you? Should you rent or buy a home in 2018? While the dreaded US Housing bubble is behind us, people still fear to buy a home for the fear of something like that happening again.
As the demand increases, so do the home prices in a lot of states. But if you consult an expert realtor, they will tell you buying is still cheaper than renting in the long run. Even so, home sales are on the decrease as there are not many affordable homes left on the market.
For that and many other reasons, people are choosing to rent rather than buy. Other reasons include flexibility, as many families move from state to state frequently and owning a piece of real estate does not make much sense.
Therefore, the choice between renting and buying falls to you. In this article, we’ll list some benefits of both to help you decide which option suits you best.
Rent or Buy a Home
There are advantages both options have the other one does not offer. For example, owning a home means you won’t have to deal with a difficult landlord. But buying a home also comes with paying off the mortgage. And even though mortgage rates are lower now than they used to be, since property prices are on the rise the rates are still too high for some, says Schambs Property Management. So does renting beats owning in this case? It’s hard to say. Owning a home comes with the satisfaction of having your own safe haven, a piece of real estate you can leave for your children after you’re gone. As you can see, both have their pros and cons. We’ll list some of them below.
Buying a Home
Owning a home means the home equity will rise along with the real estate prices as you keep making payments, especially in hot markets like San Diego downtown. And while you’ll have a roof over your head to live and raise a family, you won’t be as mobile as you would with a rented home.
If you believe you’ll be able to pay off your mortgage regularly, it’s a great way to invest money rather than pay it, by putting it into the mortgage. In the end, you’ll be paying off your own home and not the landlord’s investment.
One of the best benefits of owning a home is that you’ll be able to remodel, paint and landscape it to your liking, without anyone’s permission. A few pictures of your family on the walls will make this piece of property feel like home sweet home.
Last of all, a home gives you a sense of security. You won’t have to worry about your rental contract expiring. Furthermore, you’ll be able to build strong ties with your neighborhood and belong to a community and your children will be able to attend the same school.
Renting a Home
Buying a home is great in that you can remodel it to fit your taste, but when a pipe bursts, you’re on your own. Renting a home means you’ll be less responsible and always have someone to fix these issues for you. You’ll also have less monthly costs to worry about, including general maintenance, repairs, and home insurance.
But in the end, many contend that the money you used to pay rent could have well paid off your home, depending on how long you stay there. However, you’ll have more finances at your disposal in the now. There are a lot of upfront costs with can siphon your budget before you can fully enjoy your home.
Because of that, renting a home is great for young people who’re still not planning on settling down and starting a family. Furthermore, you’ll be more flexible to move and seek better career opportunities in different states.
