To Rent or to Buy – That is the Question
Is it better to rent or should you buy a home? How do you decide? What is the best option for you financially? Like many big decisions we usually sit down and write out a pros and cons list to help us decide. This is a personal decision, and you have to decide what is best for you, and for your family.
Why Rent?
One of the reasons that many choose to rent is that it’s an easy decision. You’re not committed to a certain place for any real length of time. Yes, you will have a lease or rental agreement, but these are more easily broken, should you need or want to relocate. You’re not tied to any particular area or neighborhood and can easily hop around and explore different areas.
You also don’t have the stress of handling any expensive home repairs. If anything breaks, and you were not the culprit, it is the property owners’ responsibility to make the necessary repairs. You just need to put in a request and wait for them to fix it. The maintenance and upkeep of the property is on the landlord, and you don’t have to stress. Due to this, you also have a decent idea of your monthly expenses. You won’t have to worry about unexpected repair expenses.
Downside of Renting
The downside is that you have less security. You may feel settled and your landlord could decide to sell the home or ask you to leave for some other reason. You may also have to deal with increasing rent that is no longer affordable. If you have a flair for design, you may feel limited when it comes to making cosmetic changes to the property without approval. Some of your freedoms are dependent upon the owner.
Why Buy?
When we rent, we are basically throwing our money away each month. By buying a home you are instead investing. You start to build equity through your monthly mortgage. The money you earn by building equity is cash when you sell your home or refinance it. You’re also able to put down some roots and have a stable place to live that is totally your own. Unlike renting you have the freedom to update and personalize your home as much as your taste and budget allows. The sky and well… ahem.. your pocketbook is the limit.
Downside of Buying
It takes a lot of time and energy to find the right home for you and your family. There is a lot of legwork involved. You may need to find an agent, you will want to tour homes, get approved for a loan after a credit check and paperwork, deal with home inspections, earnest money and other homebuying costs, which are sometimes unexpected. After buying a home you will need to prepare for the added costs of owning that you used to defer to your landlord. Any property upkeep, and maintenance is on you. The value of your home will also vary depending on the market and any economic fluctuations.
Buying and renting both have their benefits, and it’s up to you to decide what is best for you at this time in your life. If you have any questions about buying in the Anchorage, Eagle River, Wasilla and the Mat-Su Valley or need any help with the processes we are happy to help! Just contact us at 907-694-4888
