Many people believe that the ultimate goal is to own there own home. But is this really the best thing for you and your current situation. We spoke with Chris Thompson, a 10-year real estate veteran, on the difference between a person who should rent and a person who should buy.
Read his thoughts below and check out the infographic on Rent vs. Buy.
For many people, renting could be a great option depending on their circumstances. Take millennials, for example. If you have found yourself in this current situation, where you are looking for places to rent, www.moveflat.co.uk may be a good place to start. Many are just getting started in their careers and don’t have enough money saved for a down payment. Another example may be that a person (of any age) is moving to a new area and wants to check out a neighborhood or city before they fully commit to owning a home there. Kind of a try before you buy option. I have worked with many renters who do just that. I currently have a tenant in a property that I manage who is active duty military. She only gets her orders 2 years at a time. She wants to own a home but doesn’t want to risk it given that she doesn’t know where she’ll be once she receives her next orders. In a rental, if an active duty member gets transferred, all they need to do is provide their landlord with a copy of their orders and the landlord has to let them break the lease with no penalty. They don’t get this luxury if they are homeowners. Homeownership could also be interesting to someone with a disability as they require modifications to their homes to help with everyday living, for example, wheelchair ramps etc. However, this could prove expensive to the person along with other costs. Renting could be better for them as landlords can prove to be helpful with making the amendments needed for disabled renters. If you are a disabled renter and want to know your rights you might find websites like swdbtac.org a good place to find information that might be helpful to you when looking for property.
On the other hand, there are a lot of reasons people should own, rather than rent. One of the biggest reasons is cost. In a large portion of the country, owning (even using an FHA loan), is cheaper than renting. Some of the benefits to owning are the tax deduction, the opportunity to build wealth, personalization, and most importantly pride in ownership. What I mean by personalization is that most landlords won’t let you paint, hang things on the wall, or remove a wall entirely to open a space up. In your own home, you can make these decisions and make your place truly your own. I’ll need to find the exact updated stats for you, but about 78% of people say they feel a better sense of security and comfort owning a home vs. renting. One way to think about it, whether you are renting or own, is that you’re still paying a mortgage. If you are renting, you’re paying your landlord’s mortgage, but if you own, you are paying your own mortgage. Whose would you rather pay? Remember, if you’re considering buying a home, you could look at house and land packages which gives you the power to have complete control over where you live and the home you live in.
Infographic found here.