Many first-time homebuyers are taking that next step in life. After all, let’s suppose that they’ve only been able to afford to pay rent over the past several years as they get settled into the careers. But once their savings have reached a good enough plateau for a down payment, the idea of a mortgage begins to look more promising than it once did. Here now is a beginner’s guide to homeownership centered around one question: should you rent a home, or buy one instead?
First of all, let’s talk about the pros of renting. In general, you don’t have to pay as much upfront. Most of the time, you will need to provide enough money to cover the first and last month’s rent along with a security deposit. Meanwhile, if you are looking to purchase your home (even a so-called starter home) you’ll need to have the funds available for down payments and closing costs. Renting could just make more sense from a financial standpoint.
Also, living in a rental (whether an apartment or a townhome) tends to lead to less stress about timely maintenance. A simple phone call or maintenance request via the online resident portal can make upkeep a snap, especially if you aren’t expected to do much more than keep the grass in the backyard nice and neat.
There’s also a great deal more flexibility in terms of ending your lease. Now let’s say you need to move because you are starting a new job – perhaps in a different part of the state that makes commuting a hardship. You can get out of your lease, even if that means you have to pay a termination fee. Either way, renting provides a great stepping stone to full homeownership.
That said, there are numerous benefits to buying your own home. Surprisingly, it might be more affordable to buy a home instead of renting – especially in a real estate market that is currently hot. This determination will largely depend on two factors: your down payment, and your mortgage rate. Plus, the mortgage tends to be fixed, unlike rent which can go up year-by-year.
In the end, the choice is yours! Buying allows you to make the future a little less uncertain. Home equity is important, especially when you add in the value of remodeling or renovating. You have more freedom of choice when it comes to buying as well – so homeownership is even easier to attain. Finally, consider some of the perks associated with property taxes and other taxes related to owning a house – deducting interest could be a huge money-saver as well.
Here at Gnu Homes, we want to give you a fresh home buying and home building experience. We are focused on design, and our homes are designed to be lived in as soon as possible. Are you ready to get the home of your dreams? Then it’s time to Join the Herd! We’ve got a contact page where you can reach us! You can also get in touch with us by phone at 443-212-8218. Are you social? Come follow us on Facebook, Instagram, and LinkedIn!