Buying A Home vs. Renting A Home
In the spirit of June being National Homeownership Month I thought I’d revisit the topic of buying a home vs. renting. Long before I became a real estate agent I was a big believer in buying a home or multiple homes. My belief has only strengthened as the years have gone by. Many still consider it to be the American Dream to own a home and it’s truly not as hard as one might think. Gone are the days of needing 20% down in order to get a mortgage. Home prices are rising, so are interest rates and the cost of renting. If you’ve ever thought about buying a home the time is now!
Stability – renting does not give you stability. The owner of the property can decide to sell, decide not to renew your lease, or raise your rent to the point that you decide to move. If you own a home and pay your mortgage, taxes, and insurance on time you can stay in the home as long as you’d like.
Maintenance- one perk of renting is that you are responsible for little or no maintenance. That might not be as good as it sounds though because you are at the landlord's discretion in getting repairs made. As a homeowner you’re responsible for maintenance but, also in control of who does it and how it gets done.
Customization- making changes to the flooring, updating the kitchen, or changing light fixtures isn’t an option when you’re renting but, it sure is when you own your home. Make it into whatever fits your personality and change it as frequently as you’d like.
Initial Costs- renting a place will typically mean coming up with a security deposit equivalent to one month of rent, a processing fee for your application, and your first month of rent. Yes, it is less than making a down payment but, rent is money you never get back. When you make your down payment and then monthly payments on your mortgage you’re building equity.
Investment- there is nothing related to an investment when you rent. You’re paying for use of the space and will have nothing to show for it when the time comes to move out. When you own you are making a long-term investment.
If you are considering buying a home in the Alexandria area and have questions reach out to us for answers. 703-988-1711 or amanda@amandadavidson.com.
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