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Renting versus Buying a Home - Which one is right for you?

Mar 29, 2021

While we believe that eventually everyone should be a homeowner, the reality is that time is not always right now. Renting or owning is a decision that many families make at some point in their life, and it will depend entirely on their situation.

 

Who Should Rent

 

Those in Temporary Situations

If you are not sure where you want to live or are going to relocate soon, it allows you the ability to do so. It also allows you to live in different neighborhoods in your city without committing to them.

 

Those Looking to Improve Financial Situation

Between a down payment and closing costs, owning a home may require a large initial investment. This can be too much for families, and renting may be a great temporary solution to allow time to save. Just be careful - depending on the market, renters can see increases in their monthly payment every lease renewal. This can keep you stuck renting forever and lining your landlord’s pocket with cash.

 

Who Should Own

 

Those Looking to Build Wealth

Building wealth is one of the most common reasons that families become homeowners - as the market increases, so does your equity. It also allows you to maintain a similar payment over the life of your loan, while renters experience frequent increases in their lease.

 

Those Who Want to Establish Permanent Roots

The stability of your monthly mortgage payment allows you to lay down roots. You will not be forced out of the area due to rent spikes, and you can build a sense of community in your city. This extends to:

  • Careers
  • Schools and education
  • Friends and family
  • Charities
  • Churches
  • Hobbies and clubs

 

Those Looking for Freedom

Homeownership also gives you the freedom to customize your living space for your own tastes and preferences. You can paint your walls, build a garden, renovate your bathroom, or build a fence in your backyard. Owning a home means you are free from the restrictions and limitations that comes with renting.  

If you’re looking to transform yourself from Renter to Homeowner, click here and speak with one of our experienced mortgage advisors today.

 

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