It can be tough to decide whether to buy a home or rent a home. Purchasing a home is a huge and long-term financial commitment, but it helps you grow your assets and can sometimes be more affordable than renting. You also responsible to make repairs on the home you own. How will you plan to pay for this maintenance? Insurance costs for homeowners are also higher than for renters.
However, if you stay as a renter, you will never grow assets or own the home you are shelling out so much money for. If you are trying to decide whether to stay as a renter or to purchase a home, then this week’s blog post is for you. Professional Mortgage Solutions helps Rego Park, NY residents weigh the pros and cons of renting a home versus buying.
Pros and Cons of Renting a Home
Many people will have to choose to rent their home as opposed to buy a home. It can be difficult to save enough money for a down payment. You will also need to qualify for mortgage financing. By renting a home, you can choose to sign shorter-term leases that are usually month-to-month or annual. In many areas of the U.S., rents are rising dramatically. If you are renting your home, then you are at the mercy of rent increases unless you live somewhere more affordable or have certain tenant protections. Sometimes, paying rent over time will cost you just as much or more as it would be to purchase a home. However, in renting a home, you are not tied to a long-term contract, as you would be in a mortgage.
Pros and Cons of Purchasing a Home
For those who notice that some mortgage payments are actually less than monthly rent payments in their area, purchasing a home may be a great choice. However, owning a home is much more than making a mortgage payment. You have to add in the costs of paying property taxes, maintenance, insurance, and other fees. Even if rent is more expensive than a mortgage payment, consider that you are paying for something that will never earn you value. Your home will not become an asset in your financial record. You can research and seek financial counseling to see if you will qualify for home ownership and whether owning makes sense as a long-term financial decision.
Real estate is always increasing in value. There has been economic turmoil in the past with mortgage markets. Many struggled during this time and some unfortunately lost their home. However, laws have been strengthened to protect homebuyers. Are you still not sure whether to rent or buy? You can always get home ownership counseling before you may your decision, and learn all the programs in place to benefit you.
If you want to learn more, or have questions about whether you can qualify to own a home, contact Professional Mortgage Solutions in Rego Park, NY. We are happy to answer your questions!