Owning vs renting your home is one of the biggest decisions a family can make. Talk with your family about options both for now and for your future. Here are four things to consider when owning vs renting.
Consider the Cost of Both Owning and Renting in Your Area
If you want to make the best financial decision for your family at the time of the move, consider the cost of both renting and owning in your new neighborhood. While you may want to invest in home ownership, it might not best the best financial decision because of the geography you have in mind. The availability of rental properties can impact rents compared to mortgages. But similarly, tight houses for sale in an area can start a bidding war, driving those prices up.
Think About Your Family’s Lifestyle
If a family member’s job is subject to frequent relocations, then home ownership may not be for you. Likewise, if you only plan to stay in a home for five-seven years, buying a house may not be the best financial decision. On the other hand, if your family is handy, or enjoys doing projects on the house, ownership might be for you. Landlords handle large maintenance items on a rental property.
Owning Is a Good Investment
Traditionally, owning a home has been a good long-term investment. With that long-term investment, the value of your home will increase. However, as we have seen in the short term, the housing market is constantly fluctuating. Housing prices may drop, but they likely rebound making home ownership worthwhile in the long run.
Stable Monthly Payments With Owning
Once you have your mortgage and terms, your monthly payment will be predictable for the life of the term. If your family is looking for a stable financial option, owning is the right choice for you. When renting, payments are subject to increases annually or short term, depending on the lease. Consider all these options before deciding. If you’re looking for a home in the Baltimore area, Vsells & Associates can help. Contact us today to get started!