Should you rent or buy? Between 2006 and 2016 the number of households in the United States grew by 7.6 million, but at the same time, less and less were buying homes. This was mainly due to the effects of the housing crisis. In 2006 31.2 million were renting and by 2016 it increased to 36.6 million. So what should you do? Is buying a home frightening to you? Or I s it easier to rent a home? Let’s discuss…
In 2017 35% of U.S. households rented, whereas 65% owned a home. So why should you consider purchasing? First let’s discuss cost! When you own your home your costs are ideally based on a fixed-rate mortgage. This means that your monthly payment won’t change, unlike renting where a landlord can unexpectedly increase your payment. Another plus is that the interest and property tax position of your mortgage payment is a tax deduction.
Being a homeowner can give you pride in yourself because you are providing a home for your family, building equity and providing a nest egg for the future. You are also able to put your own style on the home. Having a place that reflects you and your style can be a great feeling! If you rent you are very limited to what you can do to the home. You might be able to paint a wall and hang artwork, but you can not make any major changes.
One huge advantage to renting is your leasing flexibility. When you own a home you are usually signing a 30 year commitment, but with renting you have few obligations. Many landlords hope you will sign a 1 year agreement, but some places allow you to rent month-to-month. If you are moving to a new area or living somewhere temporarily, this is a great option.
When renting you have limited responsibilities. Any major repairs on the home are under the landlords control, eliminating stress on you. It is important to keep open communication with your landlord and warn them of any damage right away. That way you don’t become responsible, and you allow your landlord to take care of something before it becomes a larger problem.
You have to ask yourself…Is this where I’m going to live long term? Am I committed to staying in this location? Or do I like the idea of having less obligations and commitments? Do I have the funds to invest in a home? Bottom line is, you have to choose what is right for you. If you have any questions please write them below or call us at 760-383-2DAY