Renting vs. buying a home
Renting or buying a home may affect your lifestyle and your financial health, but which option is right for you?
Consider that your decision can come down to any lifestyle options including flexibility versus stability, your career goals, or if you want your own place. Renting and buying may both have its perks but truly think about the pros and cons to decide what’s best for you.
Before you decide, consider these questions:
How long are you planning to live in the same place?
If you’re staying in a home for at least five years, buying a home could be the right fit financially and emotionally. You can add your personal touch, making your home feel like yours.
If you’re more flexible, you may consider renting instead. For instance, you receive a job promotion that requires you to move to a new location. If you had a home, you would have to deal with the hassle of selling the home. By renting, it gives you a chance to get to know the neighborhood you’re in before you decide to settle permanently.
Renting may also be a good option if you need time to decide what you want in a home, your budget, and what kind of home fits your lifestyle.
Keep in mind that the costs aren’t worth it if you purchase a home and then sell in a few years. You may be paying more for moving, closing costs when selling, and home repairs to make your home marketable to potential buyers.
What are the potential costs?
Renting may be cheaper than owning a home due to the upfront costs including a down payment, closing costs, and home maintenance. In addition to a mortgage payment, you’ll have property taxes, homeowners insurance, and potential mortgage insurance if you put down less than 20% down payment.
On the other hand, owning a home can be cheaper, offering an opportunity to build equity and possible tax savings. With renting, your costs could go up at any time. The landlord ultimately makes the decisions, such as asking you to move out or dealing with maintenance. Although your landlord can help with the cost of maintenance, that is not the case with owning a home. You’re responsible for keeping your home in good condition including landscaping, fixing plumbing issues, mowing the lawn and more.
What’s your financial situation?
Estimate the costs of renting versus buying and see whether you can afford the upfront costs associated with buying. Ask yourself these questions:
- How much can you afford in monthly costs for a home?
- Are you ready for a long-term investment?
- Can you afford the repairs or maintenance costs?
- Can you afford a home that fits in your lifestyle, or will your options be limited by a tight budget?
Interested in buying a home?
If you’re ready to buy a home, Adirondack Bank offers a variety of mortgage products with convenient terms and competitive rates. Let our team of professional and dedicated mortgage loan originators help you choose the product that’s right for you.
The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.
