Having a place to call your own can bring feelings of comfort and pride. However, the decision of renting or buying a home may leave you feeling confused and uncertain.
Multiple factors may influence which choice you make. When you have a basic understanding of each option, you can make a more informed and confident decision.
Rent vs. buy
Many people believe renting costs less than buying, but this is only partially true. Renting may reduce the amount you spend, but only if you plan to reside in a place on a short-term basis. For example, if you have a job that requires you to move around a lot, you may benefit from renting.
Buying allows you to claim ownership of your home which substantially improves its exchange value. There are also tax benefits to owning a home that you cannot take advantage of with a lease. In some cases, you may have the option of signing a lease-to-own agreement. This essentially means that at the end of your lease term, the owner may consider selling you the home if you meet all of the necessary requirements.
A few considerations
Before buying or leasing a home, asking some basic questions may give you a better idea of what to expect. According to Moving.com, before leasing a home ask about penalties for breaking the lease early. Also, ask about unit personalization, payment terms and expectations, renters’ insurance and maintenance procedures.
When looking to buy a home, consider HOA requirements for the area, as well as any contingencies. Shop around for the best interest rates and find creative ways to negotiate closing costs.
Comparing your options and making a list of pros and cons can give you the information you need to make a final decision that will benefit your family.