Renting or Buying? Understanding Your Housing Options

Renting or Buying? Understanding Your Housing Options

The following article is a guest post.

Rental signs pop up almost every day around a given neighborhood. The same could be said for those “for sale” signs.

The housing market is certainly recovering from the Great Recession of 2008-2009. Residents have a mountain of information to go over when they’re looking to move.

You might question whether or not it’s appropriate to buy or rent a home. Before you put any deposits down, consider the details behind these housing choices. Every person has a different goal in life that points them in the right direction.

Investing for the Long Run.

Purchasing a home makes sense when you know that you’re in a stable place. Your career is going well, and you might have a family on the way. If you plan on staying in the immediate area for more than a decade, buying a home is the smartest option.

The investment in the home can be eventually passed onto your children. You’re paying down your own debt instead of investing in your landlord’s future. This particular situation applies to thousands of people right now.

Enjoying Minimal Maintenance.

If you tend to be out of town a lot of the time, taking care of your own property is almost a burden.

Renting from a reputable company, such as Invitation Homes, makes better sense. You’re not required to paint the walls or replace the roof. Simply keep up with basic, cleaning needs within the home. Your landlord performs the rest of the duties. The monthly rent might cost less than a mortgage, depending on your location.

These considerations alone make renting an attractive offer.

Creating Equity.

When you purchase a home, you’re automatically building equity. The home is worth a certain amount, and you’re paying down the principal each month. At some point, you’ll have thousands of dollars to your name.

Paying off the mortgage leaves you with a property that’s outright yours to enjoy. This investment is the pinnacle of any homeowner’s dreams. Buy and sell the property as you please from there.

Saving up for Bigger Things.

Renting makes a lot of sense when you want to save money. A dream house down the road might be out of your financial means right now.

In a few years, however, you’ll have enough money to put down a healthy down payment. Consider a studio or one-bedroom rental in the meantime. The money that you save on the rental can be placed into savings. With down payments of several thousand dollars, you’ll win out in any bidding competition.

Weighing the Costs.

Be aware that renting a property has fewer costs associated with it. You’re not required to pay property taxes or insurance. A monthly fee is the only payment.

Being free of the manual labor associated with maintenance is one thing, but the costs are another concern. Owning a home means that you incur every cost with its care, from the foundation to the roof. Renting keeps you on a fixed payment each month.

If you choose to rent a property, such as from an Invitation Homes company, be sure that you read the contract in its entirety. Be aware of deposits, property rules and possible lease periods. Understanding what you’re agreeing to is critical to a strong, landlord-tenant relationship. A beautiful home awaits you afterward.

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