Buying vs renting your home is one of the most important decisions you’ll ever make. This is certainly an intimidating question, and one that’s difficult to sum up.
First and foremost, there is no universal yes or no answer to this question seeing that real estate is constantly in flux as are the interest rates. When making this difficult decisions you should always enlist the help of professional realtors like those at Port Realty in Southport, NC. Now let’s look at the pros and cons of both buying and renting.
Pros of Renting a Property
Let’s start with the beauty of renting an apartment or a home. When you rent, you pay a landlord a certain dollar amount each month. Which a mortgage may appear cheaper, but when your toilet breaks it becomes not only your inconvenience but also your expensive. Renters also say they have found a huge psychological freedom to renting. You aren’t locked in for 30 years. At most, you probably have a 12-month lease agreement. So an advantage here would be not feeling trapped, and you can freely move on if you want or need to for any reason, such as job relocation, downsizing, upsizing, etc.
Cons of Renting a Property
Renting seems to be synonymous with temporary. If you want to establish a household, renting an apartment or a home might not be the best way of going about it. You may also find that you are every limited, such as no pets, no painting ,no nailing on walls etc. Not to even mention the that rent payments never end. Sure 30 years is a long time, but your lifetime will probably be longer. At the end, you won’t have anything to show for it, no home equity or ownership, despite all those payments. But if you do decided to rent a real estate professional at Port Realty, located in Southport, NC can help you with a list of all the available rentals in the local area.
Pros of Buying a Home
The obvious advantage of buying a home is gaining home equity, or ownership in your home. Over time the home or condo actually becomes your property, as opposed to renting, where you never own the property. Additionally, buying could be less expensive alternative than renting due to the low interest rates. In many cases, your mortgage payment, even when factoring in taxes and insurance, may be less than what a landlord charges for rent. Homeownership also comes tax benefits as real estate taxes are still fully deductible. An owner of property also has fewer restrictions, and can add or modify to their property as they wish. However some neighborhoods have HOA’s (homeowners association) that have restrictions. If so, the HOA will need to give approval.
Cons of Buying a Home
There are also disadvantages to owning property as well. Coming up with a sizable amount of money, either for down payment or to buy outright. When renting, typically you just need the first and last month’s payment. You are also required to pay real estate taxes and insurance, which don’t stop once the mortgage is paid off. You may even need to pay costly HOA dues. The home repairs are also a big concern. Along with a monthly mortgage, taxes and insurance you could also accrue large home repair bills. It’s also not as simple to relocate. You will have to sell your home and possible loose money based on the current market value along with paying real estate commissions at closing. So when purchasing a home you have to be careful and not overpay. A sure way to know if you are paying fair market value is contacting a professional real estate agent at Port Realty, located in Southport, NC to assist you with your purchase.
As you can see, there are plenty of pros and cons to buying vs. renting, and vice versa. When you rent, you pretty much know what you’re getting into. You’re not going to make any money, but you’re not going to explicitly lose any either.
When buying a home, you’re making a gamble on your future, and the future of the economy. Typically, you need to put a large sum of money down, and you need to be ensured you can keep making money so you can pay your mortgage payments. While also maintaining an emergency fund so you’re able to pay for repairs if and when necessary. Ideally, the tradeoff is that you’ll be rewarded for making that homeownership leap of faith.
Whatever you decided to do make sure you are working with a credible real estate company such a Port Realty, in Southport, NC.