Rent Vs Own- What Home Living Situation Is Right For You
When looking at renting VS buying a homes there are many factors to consider and this a guide to help with the decision making process.
Buying your first home is a huge investment, it doesn’t mean just a financial decision. You may have a number of reasons why renting a home may make more sense than purchasing but investing in real estate is never really a bad idea.
What is really better? It really depends on your goals, individual scenario, future plans, income, expenses, ability to repay, personal savings or lack there of, and a few other factors. This day in age there is a number of home lending products that cater to first time home buyers with minimal and no down payments.
The amount of rents especially in the greater Portland Market have been on a steady increase as time has been going by. Also interest rates don’t look to be going down anytime in the near future with most forecasts pointing to increased rates over 2019. Right now locking on a fixed rate mortgage on a 30 year fixed rate loan guarantees you home payments for the next 30 years. How much has rent been increasing each year? Hmmmmm..
Think of owning a home like a huge savings account. The more you pay in mortgage the more you save, its your home and your equity as well what ever decision are made about the property are your decisions. There are some instances there it makes more sense to rent vs buy, and in those cases we will advise you that way, but real estate is such an amazing investment. It has changed my life 10x over and I am sure it can help you too. Let’s chat about what it takes to get you into the home of your dreams now!
Major things to consider when deciding if its better to rent vs own.
Renting a home
Financials- All money for rent goes to landlord. I.E. if you rent is $1500 that is all going to your landlord’s payments and equity not yours.
Control- Home’s general maintenance and major issues are controlled by landlord
Property Tax And Insurance paid by landlord
Customizations- As a renter you cant customize the home or add value to the home with sweat equity
Monthly Payment- Rents are controlled by the landlord
Owning a home
Buck stops with you- want to make an addition, go ahead, heater breaks, you also have to fix
You are responsible for everything
You reap all financial rewards
You have a huge savings account with your home
Can have tax benefits- contact your CPA or accountant for more details
When deciding if its better to rent vs buy just contact one of our licensed loan originator and have them complete a rent vs buy analysis for you to see if your money can be working harder for you.