What’s the real difference?
Choosing between renting or buying your own place is a real major decision, but never an easy one to make. It requires deep thinking, financial planning and sometimes, lifestyle change too.
If you’re currently renting and have hopes of owning your own house, this may be a good time to think about your next step. With rent costs rising yearly and many new home buyer programs, aka down payment assistance, available, homeownership may be a closer dream than you realize.
Renting means you pay 100% interest toward your landlord’s investment. Yes, you may have the luxury of moving with no penalty whenever your lease ends, but it also means you don’t have control over increasing rents or if the owner decides to sell it in the future. Every time you move it will cost moving expenses and time.
Owning a home is an asset that you may eventually own outright. You will pay a combination of interest and principal through the term of your financing. Historically properties increase in value and your principal portion of your payment pays down your loan. This is why it is a true asset so the advantages are limitless, including, wealth building, stability, belonging to a community, and you have control over your living space when you own your home.
Whatever option you think is best for you, keep in mind that you will pay to live somewhere, whether it’s your own home or your landlords home, so, it might as well be your own. Not only does it cost less to own there are tax savings for owners too, ask us more about that.
Looking to buy your own home soon?
We would love to help you reach your homeownership goal, help you set a budget (and find many properties within that budget), and help you find your dream home, regardless of which stage of your life you are in.