To Rent or Own a Home? A Comprehensive Guide to Help You Decide
Should you rent or buy and own a home? It’s an age-old question that triggers different responses. Use this elaborate guide to help you decide.
The debate between buying a property or renting it continues to rage on.
Your age probably determines where you stand on this issue. A lot of younger people haven't even considered the thought of buying a home because jobs are too insecure and houses are too expensive. If you're a bit older, though, you might think that renting is a waste of money.
Today, we're going to help you figure out if you should own a home or rent one. The reality is that each person's situation determines what's best for them, so there's no definitive answer that works for everyone. We'll lay out a few factors, though, and let you decide for yourself.
Your Financial Situation
The easiest way to determine if you should rent or own is your current financial situation. Owning a home is simply not in the cards for most people. It usually comes down to your ability to save money for a down payment on a house.
At the cheapest, you're likely going to have to come up with a 5% down payment on any house. If you live in an area where houses are reasonably cheap, that might be $10,000, but if you live in a big city, that number could be $25,000, or more. Then, you start getting into housing loans and mortgage payments.
When you've got a stable income and low enough living expenses to be able to save money, then incurring these expenses isn't too big a deal. If you're living paycheck to paycheck, renting is the only way to live.
Lifestyle & Job Security
The second thing to think about when you're looking at buying a house is your own job security. You may have a great job that affords you the ability to purchase a home, but if you aren't certain of your long-term job security, you may have some apprehension when it comes to buying a home.
Now, this changes if you're trying to get into property investment. It's not the end of the world to buy a house, put money into it, then leave for another city because, with the right property manager, you can make a lot of money on an investment property.
The flip side of this argument is for those that haven't settled into their careers yet. If you don't know where you're going to be in the next couple of years, both geographically and in your career, it makes more sense to rent for now.
Everyone Wants to Own a Home
Sure, everyone wants to own a home but renting vs. owning is not a black and white issue. Sometimes you have to rent for a while in order to save up for the house that you want, sometimes paying a mortgage is cheaper than paying rent.
If you can afford to take on a down payment, why not buy? Even if you leave your job and move to a different city, you can always hire a property manager to take care of your house, rent it, and make you some money.
At Clockwork Property Management, we handle leasing, management, accounting, and offer 24/7 maintenance, along with many other perks. Come back and visit our blog again to read more about the benefits of homeownership, property development, as well as great resources for renters.