Weighing the benefits of renting versus buying often comes down to finances. On the one hand, renting could help keep more money in your bank account since you don’t have to worry about paying for costly repairs or property maintenance. On the other hand, the increased costs associated with buying a home allows you to own an appreciating asset. As the value of your home increases, so does the amount you could recoup at the time of sale.
But these aren’t the only factors to think about as you decide whether to rent or buy your next home. Before signing another rental agreement, consider these additional advantages and disadvantages of entering the housing market.
Individuals and families who decide to continue renting often cite the following reasons for renewing their leases:
- Unlike homeowners, renters don’t have to pay property taxes.
- Renting allows you to try out different neighborhoods without the commitment of buying.
- It typically costs more out-of-pocket to get into a new home than it does a new apartment.
- The cost of homeowners insurance is typically higher than renters insurance.
- Renters can quickly relocate to a new area.
But, those who’ve made the leap from renter to homeowner often find the benefits far exceed the short-term perks of renting. For example:
- Unlike renters, homeowners can make interior design changes to match their personal style.
- Homebuyers can secure record low mortgage rates resulting in predictable housing payments that remain the same while they live in the home.
- Homeowners own real estate that they can borrow against as equity in the home increases.
- Homeowners often experience greater privacy.
- Generally, homeowners have few restrictions on the pets that can live on their property.
- While homeowners may need the approval of a homeowners association before making external property improvements, they have more freedom to create the home of their dreams.
Practical matters, such as a new marriage, a growing family, or a job relocation could also influence your decision to buy a new home. While buying a home isn’t for everyone, putting down roots could provide the stability and comfort you crave for years to come.
Explore your homebuying options when you get pre-qualified for a Community Credit Union mortgage loan. A home loan pre-qualification helps determine how much you can afford to spend on a home. This figure can be used to identify what type of property works best for your budget and lifestyle needs. Visit our Mortgage Center or contact us at 978-968-2200 to discover which mortgage loan option might be the best fit for your situation.