Buying vs Renting
In my opinion, buying a home is one of the most rewarding experiences a person can go through. The persuit of the "America Dream" of owning your own home can be a wonderful journey, full of excitement and anticipation around every corner.
Once you have made the commitment to start actively looking for your new home, then the real fun begins - the anticipatory feelings when looking at each property to see if this is "the one" that you will call home. I have represented and helped numerous first-time home buyers through the process of purchasing their dream home. It is such a rewarding feeling to hand over the keys to a client and say to them, "congratulations".
With anything worthwhile, it is important to consider the pros and cons of the journey on which you are about to embark. If you are someone who is wondering if buying a home is right for you, please take a quick glance at the positive and negatives of "Buying vs Renting" below, and decide for yourself if you are ready for home ownership.
Buying A Home
The Positives:
- Your home builds equity over time.
- Your monthly payment goes to the purchase of your home and when the loan is paid in full, your payments end.
- There are tax benefits (talk with your accountant to verify tax advantages).
- It gives you a sense of stability, security and pride of ownership.
- You're free to customize, remodel and landscape to your personal taste.
- You're not dependent on someone else to maintain the property.
- No sharing of common walls (no loud music, parties or TV noises, like in apartment dwellings).
The Negatives:
- The cost of your properties maintenance falls on you (items such as roof repairs, appliance repairs, plumbing, etc.).
- The added cost of property taxes and home owner's insurance. (research the costs before purchasing a home).
- If you do not make the payments, banks can foreclose on your home.
- It's not easy to just pack up and move. Usually, you need to sell your home.
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Renting
The Positives:
- Very little responsibility for maintenance.
- Easy to just pack up and move.
- Not responsible for property taxes or home owner's insurance.
The Negatives:
- There are no tax benefits (landlord or owner gets the tax advantage).
- Your monthly payment goes to the landlord/owner.
- There is no equity built-up over time.
- There is no pride of home ownership.
- There is no control over rent increases.
- There is the possibility of eviction.
- The possible sharing of common walls (loud music, loud parties, loud conversation or TV).
You would think as a Real Estate Agent, I would advocate everyone owning a home. But, the truth is, I know that home ownership is not for everyone. As my slogan says "What Matters To You Matters To Me", and if owning a home puts you in an uncomfortable fiscal situation, then I would not advise you going down that path - wait until you're in the right place financially to make the jump from renting to owning.
Please take the first step toward home ownership by talking with a lender today to see if buying a home is affordable. I can put you in contact with a lending professional who can assist you with finding the amount of loan for which you could qualify.
I hope you find this information helpful.
Yours sincerely,
Rick DeAguiar
P.S. If you do not have a lender, I can put you in contact with a lending professional that can assist you with getting pre-approved for a loan. Please fill out the form below for more information.
