Decisions are needing to be made, but you can’t make up your mind on renting or buying. They each have their pros and cons, but determining which is best suited for you can be a challenge. Here are a few ideas you should think about before taking that best step into the world of homes.
Monthly rent payments compared to monthly mortgage payments are a big difference. Mortgage payments are what will add to the equity into your home. Having equity on your home can be very beneficial in the long run. Mortgages can also be a tax deduction as well since it has interest on it. Also, mortgage payments when paid on-time can help boost your credit score, unlike rent monthly payments. Rent monthly payments only guarantee that you are living where you are renting for that month. Mortgage payments are better compared to rent, but that’s if you can afford it.
Before purchasing that new home, can you be your own handyman? When you are renting you do not have to worry about plumbing issues or changing air filters. The landlord is responsible. But when it comes to buying your own home, mowing the lawn, fixing leaks, and cleaning gutters become your own responsibility. Hiring someone for every problem can get pricey.
Can you handle the pressure of buying a home? The amount of stress that factors into the buying process can be a lot for some who are already dealing with other things. If you are having kids soon or in the process of changing jobs, renting would most likely be the best option for you until you can be completely stable. Large mortgages and loans can be hard when the amount of pressure you have going on is too much and can lead to missed payments and even losing your home. Factoring in the amount that is already on your plate will help you tremendously when you are deciding which option is better for you.
What helped you decide on whether to buy or rent? Let us know in the comments below!