Are you ready to move out of that apartment into a house? A Look at Buying vs Renting.
Purchasing a home is a huge decision that requires you look beyond the aesthetics of a house, or if the neighborhood has a pool and what type of neighbors or school district you may be in.
There many questions you will need answers to will guide your decision. Consider the following when deciding if you should buy a home or rent one.
- Is ownership the best choice for long-term financial health?
- Can I afford the down payment?
- Will I need more space for my family?
- Can I afford the size of home I need in a safe neighborhood?
- How long will I stay in my new home; two years, five years, forever?
- Am I willing to buy a fixer-upper that I can design, remodel and can I do some of the work myself over time?
- Is it important to me to be able to change the look of my residence into a home that reflects my lifestyle?
When it comes to buying vs renting, financial experts will tell you that in the long run, owning a home makes better financial sense than renting. Each mortgage payment is similar to an investment and your home should be gaining value. Once it is completely paid, you own a building that is worth more than your financial investment. Returns like this usually can’t be seen unless you are staying in the home more than five years.
Beyond investment and returns, there are other aspects of home ownership that you should consider before deciding between renting and buying a home. Paying for a home is not just the cost of the mortgage payment. There are other fees associated such as taxes, insurance and maintenance costs.
Buying VS Renting Maintenance Requirements
You are usually not responsible for the maintenance of a rental home. However, once you sign those mortgage papers, you are the one who will be mowing the lawn, plunging the toilets and trying to figure out that strange noise coming from the water heater.
Some homeowners enjoy this kind of maintenance while others would rather spend money to have someone else do it. You should think carefully about what type of homeowner you will be and if you can afford to pay for maintenance services or do them yourself.
Along with the cost of maintenance and repairs, you will also have to invest time into your home. Yard work is an ongoing chore while repairs can take several trips to the hardware store to get the right tool. If you value using your time to go hiking, antiquing or other hobbies, you may find yourself frustrated with the time requirements, owning a home places on you.
The Nonmonetary Worth of Buying VS Renting
According to US News, less than 40 percent of people who are under 35 years old own a home. This data may reflect that age groups’ tendency to change jobs regularly.
In the end, buying vs renting a home may come down to less concrete reasons. If you have a growing family, the stability of owning a home probably makes sense. For some families, being able to paint walls, remodel or make a home their own may be only reason needed. For others, a home and mortgage may feel more like a weight holding you down. You should think carefully about what is important to you and why you want to either buy a home or rent a house.
Either way, a house doesn’t become a home based on how you pay for it; it becomes a home based on how you live in it.
About Houston Plans and Permits
Houston Plans & Permits provides custom design services for builders and homeowners located in greater Houston. Our home plans are designed to meet your town’s building code requirements, and our professional permit expeditors will oversee and complete your building permit applications and walk them through your town’s entire permit process. If you’re buying a home and looking to remodel, we can help. Contact us to see what a professional house plan can do for your fixer-upper.