Renting vs. buying a home is a big decision that involves many factors. So how do you know if you are ready to be a homeowner? Perhaps the most important of these decisions is known as the Breakeven Horizon. The Breakeven Horizon answers the question, “How long will you have to live in the home before you can sell it without losing money?”
Here’s what you want to consider:
1. What are the upfront costs associated with buying the home?
- Home inspection fees
- Down payments
- Closing costs
2. What are the costs associated with owning the home?
- Mortgage payments
- HOA fees
- Property taxes
- Homeowner’s insurance
- Home maintenance
3. What are the costs associated with selling the home?
- Realtor fees
- Closing costs
- Repair Fees
4. What are the tax benefits associated with buying?
- If you itemize deductions, this is a key factor to consider.
Once you calculate in all these factors, it gives you a greater picture of your Breakeven Horizon. If you are not going to live in the home long enough to hit the Breakeven Horizon, it’s probably best to save your money and keep renting. But when you’re ready to buy a home in the Lake Norman area, the Cloninger Properties Team is ready to help you find your dream home.
Keeping it real,
The Cloninger Properties Team
Karen and Tony Cloninger
704-458-1984
tony@cloningerproperties.com
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