Depending on your finances and hope for your future, you should make a decision on whether to rent or buy. Owning a home is a dream for many people; however, several factors could determine the answer on whether you should rent or buy a home.
Let’s take into consideration your finances.
Renting: Your monthly expenses when renting are typically fixed. One thing that could possibly change, depending on the time of year, how many people are renting the home with you, if you are required to pay for your own utilities, and etc. is your utility bills. Generally you will have to pay a security deposit equal to first month’s rent (landlords are allowed to charge the equivalent of two months’ rent in the state of Iowa for a rental deposit). When renting, the landlord is in charge of fixing any issues that were not caused from the tenant.
Buying: When buying a home, you will be required to pay for property taxes and insurance. Your property taxes and insurance always have the possibility of going up or down every year. Depending on the type of loan you’ve applied for, you normally are required a down-payment, (this can range anywhere from 3%-20% down). Grant programs allow people more affordable down-payments and closing costs. A lender could help to see if you qualify. You also will be in charge of maintaining the property and fixing anything that goes wrong.
Let’s look at the reasons you would want to buy a home:
If you plan to stay in the same place for a few years, then buying may be the route you want to take. Buying a home should be looked at as an investment. You may have the opportunity to make improvements to the home and sell it for more money then what you bought it for.
If you were to move, but you didn’t want to sell your home, you could always rent it out and make a small profit each month.
You have more of an opportunity to do as you please, as far as decorating and remodeling the home goes, when you own it. A lot of rental properties also exclude animals, so if you own your home, you have the opportunity to make that decision!
You have more to show for the money you’ve spent when you own a home. Eventually you could have the opportunity to pay the home off and not have to be making monthly payments. Whereas if you always rent, you will always be making payments.
Let’s look at the reasons you would want to rent a home:
If you are unsure about how long you will be staying put, renting may be a good option for you!
If you do not want to be responsible for repairs to the property.
Maybe your financial situation could be set to change where you might not be able to afford a mortgage payment in the price range you would want to buy in.
Sometimes your monthly payments could be cheaper then what you're paying in rent! Call today with any questions you may have. I would be happy to help you decide if renting or buying is in your future!
Making Realty a Reality
Enjoy your weekend,