Buying one’s first home understandably fills one with a real sense of pride and accomplishment. It’s often hailed in American society as a major achievement of the American Dream, but is it right for you? Should you buy a home now or continue to rent and wait to see what the future has to offer? There’s no shame in either option, but it’s important to decide which path is for you. Let’s discuss reasons to rent and reasons to buy a home.
Reasons to rent
According to i Property Management, approximately 36.6% of households rent their homes in the United States. While it may seem less ideal to rent a home over buying one, there are plenty of reasons renting may be the best option for you and your family right now.
- Financial feasibility – One of the key reasons to rent has to do with one’s budget. Perhaps you’re still in debt with bills and other expenses and adding a mortgage on top of that makes little sense. Because owning a home comes with more monthly payments in a variety of areas, it may be a better option to rent for the time being and save for a buy in the future.
- Liability – Another reason renting can be more appealing lies in the fact that any broken appliances like a dishwasher, sink, shower, or AC unit gets covered by the landlord. You won’t have to fix it yourself or pay a professional. This can save on hundreds of dollars that could be used to save up for either buying a home or paying down debt.
- Mobility – If you are looking to move up in your company to a position that may require moving or are the type of person that doesn’t envision staying in one place for the long term, renting makes more sense. It’s much easier to get out of a rental lease agreement than it is to get out of a mortgage.
Reasons to buy
As with renting, there are also reasons buying a home makes the most sense for you at this point in your life.
- Planting roots – If you’ve been married for a while or are at a stage in life where you’d like to put down roots and raise a family, buying a home makes a lot of sense. Perhaps there’s a neighborhood that has been drawing you for some time, and you’d like to spend a number of years living there. This could give much peace of mind to live in the area of your dreams.
- Equity – Something that adds even more excitement to owning a home is the potential to build equity in its value. Often times, the home you buy that is properly taken care of ends up adding to its value down the road, allowing you to sell it for a profit.
- Tax benefits – Although paying property taxes on assets is certainly a pain, this could actually be to your benefit during tax season. As stated on Dave Ramsey’s website: “Many of the costs of owning a home—like property taxes—are tax deductible. And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return.”
- Sole ownership – Buying a home means you own it. This means you have significantly more freedom to renovate and upgrade your home as you see fit, rather than having to acquire approval from your landlord or HOA. It allows you to truly make your house more than just a building but a representation of you and your family’s interests. This can also bring stability to the fact that what you invested in is truly yours.
Whether you end up choosing to buy or rent a home, make sure it lines up with you and your family’s best interests in both the short and long term. Don’t simply jump in because that’s what is expected of you. Do the right thing, and you’ll reap the rewards in the long run.
If you’re currently searching for a new home, are in need of a qualified seller’s agent to assist you in the sale of your property or have any general questions regarding real estate or the current market, please feel free to contact my office at any time. We specialize in Sunset Beach real estate and the surrounding area.