Most people in America cannot figure out if it is better to buy or rent a home. No wonder many think that renting is the best option as they can not afford to buy a home. It is also helpful for those people who want some extra flexibility. If a person rents a house, then he or she has to face fewer responsibilities and difficulties. Buying your own home involves many savings and long, short term commitments while renting is somehow opposite to it.
Now it is up to you to decide which either side do you fall in. Are you looking for a one-time settlement or you like changing locations now and then? In the expensive real estate markets, renting a home is generally considered a simple way to get to the place of your choice and requirements. In this article, I am providing you with some reasons to help you decide which option is better for you, buy or rent a home?
Choosing an option: Buy or rent a home?
If you rent a home, then you do not have to face any problems with homeownership. Home renting helps to maintain the standard of living. Renting a home is also the easiest way to live in a home without any hassle. However, if you love to have a home in your name and ready for all the legal details, renovations, and touch-ups of the house, buying is your goal.
Decider #1- Major expenses
If any of your family members or friends buy a home recently, you are well aware of all the hassles they face. No doubt, the process of purchasing a home is hectic and stressful. If you want to opt for it, I suggest choosing a good mortgage broker. Even better, take expert guidance and opinion from the gurus themselves from Aceland Mortgage. You have to make a huge investment, plus many other small expenses also add up along with the major ones. Discussing your concerns can help you decide better if you want to buy or not.
If the answer is no, then renting a home can provide you a stress-free living. How? Well, you just do the necessary paperwork, give the initial deposit, and you are all set to move it. You can easily avoid all the major expenses like maintenance costs and repairing etc.
Decider # 2- Insurance
If you rent a home, then the insurance is much lesser. The home insurance on buying is much more than a rented house. In some cases, it is affordable, but in some, it is not. As I said earlier, if you have the right mortgage broker, they can ease this process for you if you are planning to buy. They can provide you options of insurance that suits your pocket. However, still, if you don’t want to invest that much, renting a home, for now, will be easier for you.
Decider # 3- Down payment
Simple logic says that when you have to buy a home, you do a lot of preparations. You start to save money for a down payment. In the USA, approximately the average earner will start to save money 10 years ahead. After ten years, they have enough money to do 20% of the downpayment of their home. So if you are among those savers, buying won’t be a problem for you. In case you don’t have any savings, then what to do? Well, if someone rents a home, then he does not has to pay the downpayment. Renters require to save a security deposit which is considerably less than the downpayment.
Decider # 4- Property tax
Almost all the properties come up with taxes. Property taxes are a huge expenditure. According to New Jersey Tax Foundation, USA, the property taxes are approximately over 2 percent. In some states, the taxes are not, but in some other big states, if the home’s value is high, then the taxes are also high. Now, if you are willing to pay your property tax, then why not buy the house of your dreams. But if you don’t predict enough budget in the near future, you should better opt for a rented house. As a renter, you are free from all this.
Decider # 5- Long-Term residence
So if you do not have to live in the city for many years, then renting a home is ideal. Because if you buy a home, then you are expected to live in this home for years. However, if you plan to stay for as long as there is a better opportunity for you elsewhere, you can easily think of buying a home.
So what do you guys think buying a home is better or renting? If you ask me then, I’ll say that buying a home with an expert mortgage broker’s help turned out to be more comfortable. However, many of my friends think the other way. My best friend opted to rent out his home because renting a home was cheaper for him. He had to make fewer commitments too. So now it’s up to you to decide what is best for you, buy or rent a home? I wish you a bright future in your dream house whether you rent it or buy it.