Choosing where you live is a big decision involving many factors, including the question: Should I rent or buy? Factors including your lifestyle and your career affect the answer to this question, as well as your budget.
Lifestyle & Career
First consider your lifestyle. Purchasing a home is a long-term investment. Most real estate experts agree that the minimum time for the possibility of selling a house without a loss is five years. Of course, that is not always the case and unfortunately, many people who have had to move in the last few years have ended up owing more on their house than it is worth.
People in careers that require frequent moves or relocation in order to receive a promotion, find that the advantages of a lease outweigh a mortgage. Perhaps you are anticipating or wishing for a change in career. A large lifestyle change, such as changing occupation or choosing to further your education are much easier to deal with when in a short-term lease. Don’t lock yourself into a long-term situation such as owning a home, if your ultimate goal is a change of scenery.
Keep in mind, selling is a long-term process. It always depends on the market and often requires additional investment into the house that you are in. Nothing is more frustrating. The fact is that emergencies and employers are not concerned about your home mortgage obligations.
Renting vs. Buying – Timing is Everything
People often mention that buying a house is the biggest investment of their lives. With an investment of this magnitude, it’s up to you to choose the right time in order to get the best value for your money. For example, when deciding to buy, the higher your down payment, the better your interest rate will be. It’s important to save enough money before the time comes to purchase a home. Also, consider the market. Choose to wait for a “Buyers-market,” when real estate prices and interest rates are low.
Budgeting for a Rental vs. a Purchase
When it comes to your budget guidelines it is recommending staying within your means. Avoid pursuing a mortgage that falls over 25% of your income. The cost of ownership can grow quickly with major repairs, adjustments or enhancements in a home you own. These components are an ongoing expense when you own a home. Taxes and homeowner association fees also add up and eat away at your budget. Some people mistakenly think that tax breaks make up for the taxes on your home.
Several people will decide to rent versus own, as there are no hidden costs in leasing. If you are renting a home, the landlord is responsible for all major repairs. At Gizzy, LLC we ensure all of our homes are in the best condition possible as we create homes, not properties. We keep both the interior and exterior well-maintained. When you rent, repairs are not your problem.
Emergency Maintenance
Monthly mortgage payments do not include the cost of emergencies. A healthy savings account is a key consideration when choosing to rent or buy a home. If you own a home and savings is not put in place for emergencies, you can be stuck in a situation of taking out a loan or accruing interest on a credit card, which can directly affect your lifestyle and your credit rating. If you are unable to keep the costs under control, your credit can be negatively affected.
When you rent, you have the advantage of a set monthly payment. There are no hidden costs when renting, which allows you to save your money for the time when it’s right to consider buying a house.
Contact Gizzy, LLC at (402) 915-0875
Are you looking for a home? Get to know as much as information you can about the advantages of both renting and buying before making your next move. The saying “Knowledge is Power” is especially true with large life-changing decisions, such as where to live. If you would like to look at one of our homes for rent, feel free to give us a call at (402) 915-0875 or fill out our contact form.