Renting or Buying a Home: What Experts Suggest Choosing?
Owning a home is the dream of every one of us, however skyrocketing property prices, especially in the states like Florida, have led people to rent rather than buy a home. Besides, those who can afford to buy a home find it difficult to choose between renting and buying. Both of these options come with different advantages as well as disadvantages. Further in this blog, we will be looking at what experienced real estate agents advise you to choose so make sure to read the blog till the end.
One of the biggest myths about renting is that it drains your money every month. However, it is not true at all. If you need a place to stay, you have to pay some amount for that. Although indeed, you are not building equity by paying monthly rent, not all the cost of homeownership always builds equity.
When you rent a place, you know exactly how much you are paying each month for the home. This amount indicates your lease so you can plan accordingly. If you live in a condo, your landlord can add some other costs within the amount of the rent. These costs include utilities, storage, and homeowner association fee.
Furthermore, you may face rent increases each time you opt for lease renewal. In certain areas, this can even be really steep. However, this may not be the case if you live in an area with a rent ceiling that limits how much rent a landlord can increase. Renting doesn’t come with responsibilities of ownership, and you get much more flexibility with renting a home.
When you own a home, you can make decisions pertaining to the looks and design of the space. You feel a sense of stability and pride of ownership. However, it is an expensive decision and you won’t be able to sell without a good real estate agent. Even if you do, you might not get the price you want. There is also a transaction cost associated with selling and buying a property.
The overall cost of homeownership tends to be higher than renting even if the mortgage payment is less than the rent. Plus you have to bear expenses such as property taxes, tree trimming, pest control, homeowners insurance, and more.
However, if you enjoy a lavish lifestyle, peace, and stability, buying a home is your thing. Although buying a property is expensive, people look at it as a permanent place to raise kids.
When it comes to buying vs. renting a home, there is no certain answer. The choice of a person depends on their preference, finances, and lifestyle. You can also get the help of a real estate agent to make a wise decision suitable for your situation. Lastly, we want to mention that renting or owning a home is not just about your financial situation. It is also about your emotional needs.