Rent Vs Buy

Think of it this way, do you want to pay someone $1,000 for something you don’t own? Or do you want to pay a bank $800 for something you can call yours. Buying or renting a house is like leasing or buying a car, eventually when leasing or renting, you will have to return the item. Household Problems R-When renting you will discover that if something breaks like a hot water tank, your landlord will fix it. Only thing is you will have no say on how or when it will get fixed. Good thing is your wouldn’t pay for your handyman. You also might not be able to paint the walls, nor have certain pets.

B-While owning your home, you would be fully responsible for fixing your own household problems. But sometimes your big appliances will have warranties on them and all you would have to do is pick up a phone. You would be able to decorate the way you want and have as many pets you would like. Pricing- RENT/BUY R-Let’s say you are renting a 1,400 sq ft home in your area for $1,000 a month, no utilities included, plus $100 for rental insurance a month. Monthly you are spending $1,100 ($1,000+$100=$1,100). Yearly you are paying $13,200 ($1,100(monthly)x12(months)=$13,200). All this for a property that is not yours, and you will always be thinking how long you will be there, or if your landlord is paying on things they should be. B-Let’s say there is an 1,800 sq ft house being sold for $100,000 in an area you love, and you love the house…if you would put 3% down which is $3,000(100,000x.03=3,000), being on a 30 year fixed rate, your mortgage payments with taxes and insurance may be $700-$900 a month. This would be $9,600 a year ($800x12=9,600). This would be your home and you could get a tax deductible at the end of the year. Time to Stay? Rent *If you are new to the area, trying to figure out if it is right for you *If you are trying to save money *If you are trying to increase your credit *If you play to live in the area less than 2 years Buy *Love the area *Putting roots down *Build equity over time *Stability *Freedom Conclusion R-At the end of the day it is your decision. Either way you have a roof over your head. If you are renting and you are good with it, great but eventually one would assume you would want to buy in the future. So as you pay your landlord, make sure you pay on time along with all your utilities. Always make sure you receive a receipt. Keep track of everything. Work on your credit, open a savings account and put all your extra money in it. $20 every paycheck, your pocket change, your fast food money, anything extra put in your savings so when you are ready to buy you will have a down payment. B-If you are ready to buy, make sure you can safely financially be stable. Make sure you want to live in the house for over 5 years, and you loved it. Don’t buy a house just because you can, or because someone is telling you that was the last house of the season. Buy it because you want to! Just because you can buy doesn’t mean you have to. It is one of the biggest purchases of your life. *These are my own opinions, prices of rent and mortgages are estimates and examples. Best way to find out is to contact a Lender.