Welcome to the UtahPerfectHomes.com Blog

2018-02-08 12:43:33
To Rent or to Own that is the question.

 

 

Renting is throwing money away. Isn

 

A few things to think about before buying a home vs renting. When you are renting and something goes wrong who do you call? Not Ghostbusters, but your landlord. Right! Well when you are a homeowner and you wake up in the morning and the water heater is not working or when you walk outside and see your grass up to your ankles who are you going to call then? Yourself, Right!

Let's look at a list of things to think about before buying a home. You will want to be prepared for these expenses as a homeowner. 

 

 

Maintenance

  • Renting. For the most part, maintenance costs are the landlord's responsibility--the costs are immaterial to the renter.
  • Buying. You'll be responsible for all costs associated with maintenance. This could be a hefty sum depending on the condition of the property and/or any special HOA assessments.

Stability

  • Renting. You can expect to move often, especially if you rent in a high growth market. This is primarily due to rent increases, which have a tendency to push out lower-income households. You're also at the whim of a landlord if it's decided that the property should go for sale. Also, consider if you're the type of person who needs to relocate every couple of years--this could be an advantage to you.
  • Buying. This is just the opposite from what was previously mentioned. In addition, your payments will remain relatively fixed, except for insurance premium increases or property tax increases. Don't forget to account for PMI and how it'll affect your future payments if this is applicable to you. 

Pride of Ownership

  • Renting. Essentially none.
  • Buying. Homeowners typically enjoy showing friends and family new remodels, new landscaping, new appliances, etc. The social aspect is also fulfilling to some, so is the idea of owning a large asset that can be passed down to future generations. For these people in general, a place to call home is just as important.

Savings

  • Renting. The cost of renting is typically 1/3 of your gross monthly income, often times more depending on where you live. Obviously, this can make it pretty difficult to save. If you split rent with a partner or friend, you can save a lot here because rents are typically priced by square footage and by the number of bedrooms/bathrooms.
  • Buying. In a way, buying forces a person to save because your principal payments act like deposits into a bank account (a less reliable account at that). It is certainly possible to lose your 'savings' if your home is underwater (market price less than original cost). Be careful to not confuse this with investment. Savings and investment are entirely distinct.

In choosing the most viable option for you, with simplicity in mind, try to determine if having children in the future is something you would like. If it is, look into buying a home that will accommodate a larger family. It's better to end up having more room than less, something to keep in mind.

I hope you find these tips helpful as you are thinking should I rent or should I buy.

Now if you are ready to buy, please give me a call today, and let's get you into your next UtahPerfectHome.

 
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