The big debate… Rent or Buy? The thing to remember when considering if you should be Renting or Buying a home is to know your own financial situation, your plans for the somewhat immediate future, and know what you are looking for in a home. If you cannot answer these questions, that is ok. Meet with a Real Estate professional to get some advice and guidance.
So lets play out both scenarios!
Renting
Consider what you are paying for Rent. What other expenses are you responsible for while renting? Electricity, Renters Insurance, do you pay water or does your landlord? What other expenses do you incur for living in your rental?
Now, add up all those expenses. That is your “living expenses” (Do not include bills like cable, internet, cell phone, etc)
Buying
What is your mortgage amount? In case you don’t know, a mortgage consists of PITI which is short for Principle, Interest, Tax, and Insurance. Now add HOA expenses, Electric, Water, Trash, Sewer, Lawn maintenance, unexpected need fund (when something breaks, you are responsible). Let’s add those expenses now.
As you can see, buying is not always the answer. However, it is great when you are on the path to home ownership.
It is best to see what your personal needs are. Sometimes, buying, even with more expenses is cheaper than renting. Also, you are investing in your home. Buying a home can serve as a big savings account, but like all investments there is risk. Make sure that you are aware of these risks as well. With inflation and low interest rates, you can buy a home today for $250,000 and it could be worth more in just a few years.
No one knows what the future will hold, but talk to your Realtor today about if NOW is the best time for you to buy!
