One day, we may have to ask ourselves one of the hardest questions in our adult life – Should I buy, or should I rent? Sure, it may be a classic real estate question, but it’s one of the most important things we need to determine before we make a move. Of course, it’s evident that home owners gain specific benefits over renters, but most people do not discuss the hurdles brought on by home ownership.
Check out these 3 things that you need to consider when you decide if you should rent or buy a home.
- When owning a home gets you locked into a tough situation
For people who loved to plan simple, home ownership was the only way to go if your goal is to move forward financially. Your plan may be to buy a home, live there for three or maybe five years, then take some nice deductions on your taxes while you watch and wait for your home’s equity increase. When the time comes and you want to sell it, you make a little profit from it then you get to move on to a bigger and better home.
This may work in the past, but this is no longer the case for many home owners at the present moment. The days when home values increased with regularity are gone and now it’s been plummeting. This leaves homeowners with home mortgage balances that are larger than what they have expected. Presently, homeowners discover that they owe more than what their homes are currently worth, and that is a very scary situation for any home owner to face in the future.
- Owning Your Own Home = Endless Maintenance
As per renting, you don’t necessarily have to take care of your home’s maintenance by yourself – you have a landlord and you can call them anytime you need help. On the other hand, homeowners are their own landlords and they are the ones who directly face repairs… the same goes for bills as well.
Renters don’t even have to pay property taxes and fees at the Home Owners Association (HOA) – not to mention the costs that may creep up every now and then. But then again, there are still a number up sides to owning your home.
- All The Home Ownership Dilemmas Will Pay Off Once The Market Is Up
If the odds are in your favor in the housing market, this means your home ownership will absolutely pay off. In the recent years, experts have stated that the market has hit the bottom in some areas of the country. For home owners that belong in these areas, you are finally moving to closer to the light at the end of the tunnel. But don’t get your hopes up because it’s not likely that home values will skyrocket the same way they did during the early 2000s. Although, these home owners will soon be able to gain control over things and what was once a burden for them will soon turn into a benefit.
The truth is, it’s all about the math and the fact that home value cycles tend to constantly shift over time, yet it’s up to home owners to deal with these things accordingly. If you have already reached a point of financial stability, now may actually be a good time to purchase a home. But then again, if you are the type who constantly moves from one place to another or if you don’t have much faith in the market’s steadiness – renting might be the best option that would suit you the best.