Rent vs. Buy: What's the right move for you?
It can seem easier to rent an apartment - there's less paperwork involved, and someone else deals with maintenance and repairs. But rent payments won't help you build personal wealth like buying a home can, plus a house can offer greater privacy, stable monthly payments, and a place for your pets. Buying a home is a big step - ask yourself a few questions to decide if it's the right one for you.
Am I ready to settle down?
- Mortgage payments can be more stable over time
- Buying a home is a multiyear commitment, renting is typically year-to-year, or sometimes month-to-month
- Mortgage payments build equity, and homes typically increase in value over time, rent payments go to a landlord or rental company
- As a renter, moving is easier since there's no home to sell
Can my finances support homeownership?
- Purchasing a home can require upfront out-of pocket costs, like a down payment and closing costs
- Additional costs associated with owning a home include property taxes and mortgage insurance, and you're responsible for paying all utilities
- Unexpected maintenance and repairs can be costly, consider an emergency savings fund for unexpected costs
Is homeownership right for my lifestyle?
- When you own, you can customize to your heart's content, but renovation and maintenance costs are up to you; landlords often limit how many changes you can make to your space
- Homes offer greater privacy
- Most rentals require a pet deposit or additional rent, if they allow pets at all.
Ready to get in your own home?
If you've considered these questions and have decided that homeownership is the right move for you, get in touch with a loan officer today - we can help you get organized and talk about how we can best help you get into a home of your own.