Weighing out the pros and cons

If you are currently renting, I am sure you have asked yourself at one point or another if you should continue to rent once your lease is up or if you should start to consider the possibilities of owning your own home – am I right? Renting has its benefits like not having to replace your furnace when it decides to magically go out or potentially getting a credit back on your rent from your landlord for doing work around the home. On the other hand renting can have some cons, like not having the freedom to change whatever you want whenever you want or adding to someone else’s wealth rather than your own. Buying a home might not be within everyone’s financial abilities or even in the plans for your future but you clicked on this blog so you must be a little curious! If you are currently renting and are stuck on this question, let’s take a quick second to think about some major questions you need to ask yourself before making the big decision.

Are You Ready to Put Down Roots?

Do you frequently consider moving to a different state or even a different country? Do you like exploring different cities and moving around to different apartments? If you are constantly moving or thinking about moving, then buying a home might not be right for you right now. If you see your life changing yearly, then staying in a rental might make the most sense for you.

Do you dream of creating a space that is fully yours? Do you have a steady job that you plan to stay at for a while? Are you totally content staying in your current city for the next 5 years minimum? Then buying a home might be in the cards! Buying a home is a big responsibility but if you are ready to put down those roots, it might make sense.

What Are Your Finances Like?

We cannot stress this enough, buying a home is a big responsibility! Being realistic about your finances is something you need to do. You do not want to get into a house and not feel comfortable. Some loan types allow for as little as 3% down and there are also first time home buyer programs that help you get into a home with 0% down. These options are great but you also don’t want to utilize these loan types and first time home buyer programs and still not have some reserves in the bank. Having a good cushion of cash will allow you to not panic when typical homeowner things come up – because they ALWAYS do!

Calculate the Cost of Renting vs. Buying

When it comes down to really weighing your options of renting vs. buying one of the biggest factors is probably going to be cost. Taking into consideration the average cost of renting in your city and then comparing that to the home price within your budget/where interest rates are at currently is going to help paint a clear picture when it comes to weighing these options. Quicken Loans has a great calculator that can help you really see how drastic these numbers can be! https://www.quickenloans.com/rent-vs-buy-calculator?qls=ZNG_zingblog.0000065482

Risks of Renting vs. Buying

Like we briefly mentioned at the beginning of this blog, there are always pros and cons to both sides of this argument. Buying a home can come with risks but if you are fully aware and set up for those risks then they could potentially not feel as risky. When you buy a home there are always things that can and will go wrong. You might’ve just bought a home that has a 30 year old furnace that is going to stay alive for 15 more years. On the flip side, someone else might’ve just bought a home with a 10 year old furnace and found out that they need to replace it. You truly never know. As long as you are aware of the risks that could potentially happen and are financially set up for when they do, then buying a home can be a wonderfully rewarding thing!

Hopefully these four topics on renting vs. buying a home have helped you navigate the home buying world a little better. Just like anything it can be terrifying if you don’t know what you’re doing, but when you are equipped with knowledge and understanding, starting the process can feel more attainable. Have more questions or concerns about the risks and rewards of renting vs. buying? Let us know in the comments or write us a message! We would love to help 🙂