To Own Or To Rent A House?
9:36 AM
Is it better to rent a home or to own one is a query nearly everyone has to reply to one time or the other in their lives. While some people think that one option is definitely better than the other, the reality is that making this decision depends largely upon your current situation as well as your future plans.
Considering Your Financial Situation
Your financial position is the first thing you should consider when planning whether to own or to rent. The cost you need to pay to rent a place to live is generally less than purchasing a home. There are additional costs involved with home ownership, even if the cost of purchasing a home is less than what you might pay as rental. The landlord pays for repairs and the maintenance of the home when you rent it and this is something you need to keep in mind. When you become a homeowner, you will need to take care of these expenses. Therefore, you need to make sure you are financially ready to take on this responsibility before you make a purchase.
Thinking about the Future
Before you decide whether you should own or rent, you should also think about your future plans. Purchasing a home may be a better decision if you intend to live in the area for several years. If you will only be living in the area for another year before moving, however, it is generally better to rent. This is since living in a home for barely a year will not give you enough time to build equity in the home and the cost of closing and other expenses coupled with purchasing a home may make it more costly for you to buy than to rent.
Check Your Credit Rating
Another factor to consider when deciding between renting and owning is your credit rating. If you have a bad credit rating, you will finally pay a higher interest rate on your mortgage. This can end up costing you thousands of dollars over the life of the loan. Therefore, it is probably better for you to rent for at least a little while longer until you have managed to rebuild your credit. Go ahead and think about buying the home of your dreams once you have improved your credit ratings.
Purchasing a home is a better financially decision than renting is the opinion of some people. While this is the case in many occasions, it is not necessarily the case for every person's situation. Considering your personal situation carefully before deciding what is right for you is therefore important.
Considering Your Financial Situation
Your financial position is the first thing you should consider when planning whether to own or to rent. The cost you need to pay to rent a place to live is generally less than purchasing a home. There are additional costs involved with home ownership, even if the cost of purchasing a home is less than what you might pay as rental. The landlord pays for repairs and the maintenance of the home when you rent it and this is something you need to keep in mind. When you become a homeowner, you will need to take care of these expenses. Therefore, you need to make sure you are financially ready to take on this responsibility before you make a purchase.
Thinking about the Future
Before you decide whether you should own or rent, you should also think about your future plans. Purchasing a home may be a better decision if you intend to live in the area for several years. If you will only be living in the area for another year before moving, however, it is generally better to rent. This is since living in a home for barely a year will not give you enough time to build equity in the home and the cost of closing and other expenses coupled with purchasing a home may make it more costly for you to buy than to rent.
Check Your Credit Rating
Another factor to consider when deciding between renting and owning is your credit rating. If you have a bad credit rating, you will finally pay a higher interest rate on your mortgage. This can end up costing you thousands of dollars over the life of the loan. Therefore, it is probably better for you to rent for at least a little while longer until you have managed to rebuild your credit. Go ahead and think about buying the home of your dreams once you have improved your credit ratings.
Purchasing a home is a better financially decision than renting is the opinion of some people. While this is the case in many occasions, it is not necessarily the case for every person's situation. Considering your personal situation carefully before deciding what is right for you is therefore important.
About the Author:
Jim Olenbush is a Texas real estate broker that has been actively selling Austin real estate listings for over 12 years. His team of experienced Realtors specialize in Rollingwood real estate and other luxury neighborhoods around Austin, Texas.
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