[img]/images/user/96258_15524739366209904815.png[/img] There are certain big decisions we make in life - what career path do we choose when do we get married, and do we want to have children among them.
Buying a home, whether it's your first or fifth, is always a huge choice. Many people choose to forgo a mortgage in lieu of a rental agreement, but there's something to be said for owning your own home too.
So what are the pros and cons of renting vs buying a home?
Renting is a pretty easy business. You search the classifieds, go tour a few homes or apartments and sign a [url=https://www.zumper.com/blog/2016/05/what-is-a-standard-lease-agreement/]lease agreement[/url]. But there are a few drawbacks too.
[ul][li][b]No maintenance.[/b] If your water heater suddenly goes bad or the plumbing gets backed up, it's not your problem. Your landlord or property manager is responsible to sort those issues out.[/li] [li][b]No major financial obligations.[/b] While a landlord can hold you responsible for the term of your lease should you default on payments, that's a lot less damning than a foreclosure should the same thing happen with a mortgage.[/li] [li][b]Quite a few side perks.[/b] Many rentals come with lawn care and snow removal built in, or some of the utilities included with rent. [url=https://www.givology.org/~kellywilson/blog/683671/]A condo[/url] is your best bet for the most perks.[/li] [/ul][b]Cons[/b]
[ul][li][b]You can't make changes.[/b] One of the best parts of moving into a new space is personalizing it to make it your own. Most rentals have strict policies on what is and isn't allowed. Further, you'll pay for improvements that you'll receive no equity out of when you move.[/li] [li][b]Rules, rules, rules.[/b] Every rental has them - the biggest generally being whether or not pets are allowed. If you want the freedom to do whatever you want within your home, you'll want to buy instead of rent.[/li] [/ul][b]Buying[/b]
[ul][li][b]Your home is yours.[/b] You can make whatever renovations and changes you want, bring home that puppy you found at the shelter and move in your friend on a whim.[/li] [li][b]You receive equity for your time and labor.[/b] If you live in a rental for years and make a number of upgrades, you'll take nothing away with you when you move. If you own a home, however, every year you live there and improvement you do will add money back into your pocket when you sell.[/li] [/ul][b]Cons[/b]
[ul][li][b]More time and investment to start.[/b] You'll need to go through the process of [url=https://www.givology.org/~alicelaymann/blog/670998/]credit checks[/url] and bank loans and underwriting to buy your home.[/li] [li][b]Get ready for a lot of maintenance.[/b] While most rental units come with some kind of perks, you won't get the same niceties. Unless you're willing to hire someone, you'll be mowing your lawn and shoveling snow. Also, if something breaks, you'll be the one hunting down a repairman and paying the bill.[/li] [li][b]Extra costs.[/b] Besides the upfront costs at closing, you'll also have to pay insurance, taxes and all the utilities yourself. These alone can add hundreds to your monthly budget. [url=https://hhinsgroup.com/welcome-to-homeownership-tips-for-buying-your-first-homeowners-insurance-policy]Learn more[/url] about insurance for homeownership.[/li] [/ul][b]Renting Vs Buying a Home[/b]
Make sure you know everything that each option entails when looking at renting vs buying a home.
Once you're aware of the pros and cons of each, your own goals, level of commitment, and financial and credit standing can help you decide which path is best for you.
If you do decide to buy a home, learn what you [url=https://www.givology.org/~aditiahuja/blog/628103/]need to know[/url] as a first time home buyer!
Tom Clark's Blog
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