Home Ownership vs Renting: Which Is Right For You?
There's a lot of mixed advice out there about home ownership vs renting. Which is right for you? Find out here. We're breaking down the pros and cons of each.
Home ownership: it's the American dream.
A house and a little patch of land to call your own has been central to many Americans' identity for nearly a century.
But is it right for you?
Home ownership has real appeal for many people, and many benefits. But it has its downsides too and for some people, simply isn't the best option. And that's okay!
Before deciding on home ownership vs renting, it's important to weigh the costs and explore all the pros and cons.
If you're considering buying a home, keep reading for a closer look at owning a home vs renting.
Plan to Stay a While?
One of the most important things to consider when weighing the pros and cons of buying or renting is your future.
In our highly mobile society, it's not unreasonable to consider whether you'll still be in the same area a year or two from now.
And considering how often the average person changes jobs during their lifetime, a job relocation or an unexpected business opportunity in another city could call for a quick relocation.
While real estate values have risen fairly predictably over the years, there's no guarantee that your property will appreciate considerably in a short amount of time. You could end up breaking even or even losing money if you sell too soon after buying.
While it's hard to plan for every possibility, be sure to consider your future when exploring housing options.
Know the Costs--and the Terms
When looking at home ownership vs renting, it's easy to just compare the price of rent and an estimated mortgage. But when buying, there are a few other factors to consider.
When you own a home, you'll also be responsible for:
1. Property Taxes
Taxes will vary by location and can, of course, fluctuate from year to year. Before buying, be sure to get an estimate of property taxes and how they'll affect your mortgage.
2. Homeowner's Insurance
If you have a mortgage, you'll need to have homeowner's insurance. Depending on the value of your home, and its location, this could add a lot or a little to your monthly payment.
3. Home Maintenance
As a homeowner, you will be responsible for any repairs needed in and around your home. These costs can vary widely, so just be prepared if you decide to buy.
Are You Throwing Your Money Away?
Renting has its own set of costs and concerns too.
One of the biggest issues many people have with renting is the long-term cost of renting.
For most home buyers, their home is one of the largest purchases they'll ever make. This makes a home a very significant investment for many homeowners, whereas renting has no real long-term return-on-investment.
Home Ownership vs Renting -- Putting It All Together
Home ownership and renting both have their pros and cons.
While home ownership can really pay off in the long run, it's important that you understand the costs. The cost of home ownership vs renting varies by state too, so take some time to familiarize yourself with the costs in our area.
If you're weighing a purchase and renting, take a look at our mortgage calculator to get a better idea of what home ownership will cost you in the Charlotte area.