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Buying a Home vs. Renting: What’s Right for You?

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Buying a Home vs. Renting: What’s Right for You?

One of the most significant decisions you will make in life is choosing between renting and buying. This decision will not only affect the amount of cash you will have left on you every month but will also affect your lifestyle as well as the savings that you will accumulate over the years.  

Choosing to buy or rent a home is a decision that needs careful consideration. This article will provide some insights to help you make a better decision.

Knowing Your Financial Situation

There are different costs associated with buying and renting. When renting, most property owners require a security deposit from you, as it protects them against any damage that you may cause. When leasing, you will typically have to put down the rents of the first and final months before you can sign the lease. When evaluating lease contracts, ask whether your rent covers utilities, such as gas, electric, water, cable, and internet.

When it comes to buying, the highest cost is typically the monthly mortgage payments, which include both the loan’s principal as well as the interest. Your mortgage payments might vary over time if your loan is of the variable type, or if your homeowners’ insurance premiums or property taxes change. Also, if you put down less than 20 percent, your lender might require you to purchase private mortgage insurance, which will most likely drive up your monthly payments.

Homeownership also typically comes with hidden costs that might catch you off guard. For example, when purchasing, you will be the one to pay for the home inspection, as well as any quotes for repairs needed.

When looking to purchase a home, a sizeable down payment of up to 20 percent of the home’s purchase price is usually required.  And if you are buying a property in a homeowner’s association, you will also have to factor in monthly homeowners’ association dues.

You will need to evaluate your financial situation to determine whether you can afford the bills that come with your preference.

Home Buying vs. Renting: What’s Right for You?

When you ask most ‘experts’ about which option is better, there’s often a bias towards homeownership.  It is not hard to see why; homeowners generate a lot of income for businesses, ranging from mortgage lenders and real estate agents to home improvement stores. These businesses often advertise the message of homeownership as being part of the American dream to consumers.

However, owning is not always better than renting, and renting is not always a more straightforward option. You will need to consider the pros and cons of each to determine which one is best for you. Here are some few key takeaways:

  • Renting allows you flexibility

As a renter, you will have predictable monthly expenses, in addition to having someone handling your repairs. Homeownership expenses, on the other hand, tend to be unpredictable. You should always be looking into ways to reduce your costs. With electricity being one of the more predictable bills, start looking for the best Ohio electricity rates

  • Homeownership comes with benefits such as a sense of pride, stability, and belonging. It also allows you additional tax deductions and helps you build equity.

Ultimately, buying a home is a good option for someone looking for stability. However, it comes with a lot of variables, which is why you need to ensure that you are in a stable financial state before going into the home buying process. Do your research and have a checklist for your ideal home. 

Ways to Make Any Place Your Own

To be truly comfortable in your new place, you will need to make it feel like home. Here are some tips to help you in that endeavour:

  • Hang Artwork and Photos

Seeing familiar faces around you while in a new place can be very comforting, which is why you should hang those photos, the first chance you get. Your art pieces will also give your new space a sense of familiarity.

  • Consider Painting

There’s no better way of stamping your presence in a new home like changing its wall colors and painting your own. Customizing the house in this simple way will affirm to you that you do indeed own that space.

  • Get New Furniture

Although you might be fond of your old furniture, getting new pieces not only symbolizes the transition that you are going through, but it also further affirms the control that you have over the new space.

There are many other things that you can do to personalize your space. However, we recommend starting with these, as they are simple and effective. 

Bottom Line

Choosing between renting and buying a house is a decision that you should take your time to consider. Take your financial as well as your emotional situation into consideration. If you are looking for stability and you are comfortable financially, buying a home would be a great choice. If you are a nomad and don’t have the desire to be tied down, or your financial situation is not as stable as you would like it to be, consider renting.