I’m sure you have heard many debates over buying vs. renting. For those of you who are getting ready to leave the nest and in the process of figuring out where to move, here are some reasons why buying is a better long-term investment as opposed to renting.
- If you have lived at home for a while and have worked on building up some savings, this would be a great opportunity to use those funds as a down payment on a home. Now a days if you apply for a conventional loan you are only required to put down a minimum of 5%. If you are a first-time home buyer, you can apply for an FHA loan (first time home buyer loan) which requires a minimum of 3% down.
- The average rent you would pay if you were to live alone would more or less range from $1000k-$2000k. This monthly payment could be put toward a mortgage instead which would be adding equity to your home. Why not invest in property instead of throwing your money into a fire figuratively with monthly rent.
- With rentals you either have a month to month lease or a yearly lease. Both leases have there own pros and cons but collectively they both don’t guarantee the amount of time you can reside at the property. Most times if something happens like the landlord sells the property they will give you a heads up so you can find another property but why would you want to worry about that? When you buy you are signing on to a mortgage and you are paying towards owning your own home. The amount of time you wish to reside at your property is on your terms alone. It’s nice having that peace of mind.
The bottom line is buying a home is a great way to invest in yourself and allowing you to build equity. You have potential to sell your property and earn a profit. Now if you are in a position where renting is the most realistic option right now, I would recommend talking to a financial analyst or lender and discuss options of how you can work toward saving so you can buy in the future.
Office: Real Estate Door