1. How long are you planning on living in the same place?
Are you planning on putting down roots in your community or are you hoping for more flexibility to move?
If you feel certain you will be staying in this location for 5 years or more, buying could be a better financial & emotional decision. When buying a home, it is easier to personalize and make it your own. With renting a home, it could be more of a short term benefit if hoping for the flexibility to move to a new location within a time frame of a few months/years.
2. Cost of Renting vs. Buying
In some situations, renting could be cheaper, given the costs involved upfront that comes with buying a home.
Just because you are pre-approved for a mortgage, does not mean that you are fully capable of paying all expenses that come with buying a home. In addition to a monthly payment, you’ll also have property taxes, and homeowners & mortgage insurance.
Alternatively, purchasing a home could be cheaper in the grand scheme of things because it allows for the opportunity to build equity on the property. According to the National Association of REALTORS, after 6 years a homeowners mortgage payment is lower than a renter's monthly lease payments.
3. Flexibility vs. Establishing Roots
Thinking about your current life situation, is having mobility more important or are you looking to find a long term area to grow with?
Are you going to have to move in order to accommodate a family? Or will you be looking for a home, ready to fill its space with your future children and get established in a community?
4. Understanding Risks
Although building credit is a large asset to buy, there is a chance that the real estate market could change & you could lose money that you put into renovating and upgrading your home if there is a decrease in the market. There are also a lot of expenses that come along with maintenance to a home including heating & cooling, landscape, and plumbing issues.
On the other hand, renting a house means you won’t have the chance to build equity like you would with buying. The cost of rent could increase at any time and you must abide by your landlord's wishes with the property, including the risk of being asked to move out or doing maintenance.
5. Assess your finances & find a real estate agent
Once you have estimated the costs of buying vs renting a home, assess if you will be able to afford the additional costs that come along with buying or renting a house.
Find a real estate agent you trust. An agent can help tremendously assessing your decision and finding a property that works for you. Contact Molly Bruno with Atlantic Property Team at eXp Realty to help you find a home that works for you, whether you are renting or buying! mollybrunorealestate@gmail.com 860-961-8627
