Should I buy or should I rent my home?
Buy or Rent?
Decisions, decisions. What should you do? Is it better to buy or rent a home?
I’m sorry, but there isn’t a correct, one size fits all answer. It varies for everyone because everyone has their own unique situation.
The positives of renting are, it’s inexpensive to move in. You’ll pay a security deposit, and when you vacate the premises, you’ll (hopefully) get the security deposit back. If anything breaks down, such as the AC, the furnace or any of the included appliances, call the landlord and it’s the landlord’s responsibility to fix it.
Now, here’s the negatives. If you’re a tenant, you’ll need the landlord’s permission if you want to make any changes to the home. Do you want to paint a room? Get permission – in writing. If the landlord decides it’s time to sell the home, you’ll have to move – unless it’s being sold to another investor who wants you to remain as a tenant. And, if the landlord wants to move into the property, you’ll need to move. Hopefully, you’ll have a lease. And if you do, you have the right to remain until the end of the lease term. However, if you’re on a month to month lease, you’ll get ~ 60 days to vacate the premises.
When you purchase, you’ll have closing expenses. And these costs can easily be $5,000, $8,000 or more. If you plan on staying in the home for a short time, it may be to your benefit to rent.
If you own the home, you make the decision of if and when you want to move. However, as the homeowner you can do what you want. If you want to paint a room, if you want to put down new carpets, if you want to change the back splash in the kitchen, just do it. In addition, do any other type of alterations, the only one you’ll need permission from is your wife. Or possibly your husband.
If you own the home there are financial advantages. For example, it will probably cost you less per month to own your home,than what you pay as rent on a similar home. You’re probably thinking -why? To begin with, the payments will be less probably on a mortgage. When you’re a tenant, you’re paying the mortgage for the landlord. Rather than paying the landlord’s mortgage, wouldn’t you rather pay your own?
In addition, there are tax benefits. You can deduct your mortgage interest and real estate taxes on your income taxes. This can add up to considerable savings. By owning your home, you’re building up equity in the property. And building that equity in the property it is, indeed, a savings account. And 30 years (or less) down the road, you won’t need to pay the mortgage because it’s been paid off. This can be a massive savings. But not if you’re renting . Because if you’re still renting 30 years from now, your rent certainly be more than it is now. However, with a mortgage your payments will remain relatively stable.
If you have children, owning your home home can give them a sense of stability. In addition, as they get older they’ll stay in the same school system. And they’ll have the same friends.
If you can afford to get a mortgage, and if you have enough down payment and you plan on staying in the house for more than three or four years it’s time to buy a house.
When you’re ready to either buy or sell a home, contact us.
Would you like to look at homes in other Monmouth County towns?
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