The choice of renting versus buying a home is one that many consider when seeking housing. And there is no across the board right or wrong answer.
Because there are many factors that should be considered when making an informed housing decisions. These commonly include the duration of residency, the initial cost of acquisition, current market price, prevailing interest rates and maintenance.
But some variables are NOT always considered when making this important decision;
One: Rent can go up, sometimes dramatically. Here in Coweta County Georgia, a typical usufruct is for one year. After that year, anything can happen. In our hot rental market we have seen some rental amounts escalate as much as 25% at annual renewal.
Two: Your lease may not be renewed. An investor may decide to cash out and sell your home. In theory you could be forced to move every year. And while some enjoy the mobility one cannot deny that there are significant expenses associated with moving from one place to another.
Three: If your landlord stops paying the mortgage, you might be in for a surprise. And while there may be protections set in place there can still be a significant amount of inconvenience to tenants living in foreclosed properties.
Four: You may be looking for housing in a landlord friendly jurisdiction. While we have read about some foreclosures taking even months or years to execute, here in GA a tenant can be successfully evicted within the first month following default. Before making a choice to rent in an unfamiliar area be sure to understand ALL of your rights of tenancy BEFORE you sign the lease.
Five: Consider the TOTAL cost of the lease. While fifteen hundred dollars a month may not seem like a lot of money, eighteen thousand dollars for a one year right to occupy a property is a huge chunk of change.
As I said, there is no right or wrong answer to the question: “Should I rent or buy?”
But it is important to consider all of the factors involved in making the right decision.