An average person spends a huge chunk of their wage on either mortgage or rent. Since a home is supposed to be your sanctuary, a place where you get to relax and escape the daily struggles, spending a considerate amount of money on your housing situation only makes sense. But, sooner or later, every person winds up asking themselves the same question – should I rent or buy?
In order to come to the best conclusion for your particular situation, you will have to take certain factors into account. Only then can you make the best and most informed decision and decide whether you’ll be needing real estate brokerage services or the best places to rent in the area.
Should I rent or buy?
It depends on how long you plan on residing there.
Whether you will be renting or buying depends on one thing first and foremost – the duration of your stay. Let’s say you got a new job in the wonderful state of Massachusetts. You are excited about this new chapter, but also confused and worried about your housing situation. Clearly, thinking about buying a property won’t be on your mind if you are uncertain about your future or planning to stay in the area for a year only. In that situation, you would want to avoid all the costs associated with home buying which will be mentioned soon enough.
When does it pay off to invest in buying a property?
On the other hand, if moving to Massachusetts area for a long time, buying always makes more sense. In fact, it’s been calculated that if planning on staying in your home for at least 4 years, buying is ultimately cheaper than renting. Of course, there are instances where you won’t know your exact situation and you won’t be able to make any plans. In those cases, it’s always best to make an estimate that’s most likely to happen and stick to it. After all, life is unpredictable and even the most watertight plans sometimes fall through.
Are you ready to deal with the responsibilities of being a homeowner?
Make no mistake – as fun as it sounds, being a homeowner is a job not many are cut out for. The responsibilities you’ll have will begin as soon as you decide to buy a property and they won’t ever truly end. From making sure your mortgage is paid on time to having to finance all of your repairs, being a homeowner can become too much at times. On the other hand, as a renter, you would have little to no rights. Yes, someone else is obligated to carry out all the repairs for you, but you are also obligated to ask for permission for the smallest tweaks you plan to do in the apartment/house. And, as you can imagine, that is not a situation you would want to be in.
Home buying comes with additional charges...
Now, remember those expenses associated with buying a home that were mentioned a few moments ago? Well, they present the first burden you’ll face and they might be enough to deter a person from taking out a mortgage.
- Down payment
- Appraisal fees
- Loan charges
- Closing costs
And the list goes on and on. One can’t but hesitate and wonder should I rent or buy, knowing they will have to face a lot of additional problems at the very beginning of the home buying process. But, what you should do when faced with such a question is think long-term. Yes, you will have more expenses as opposed to renting at the beginning. But you will know that all of that money is going towards something you get to keep at the end of the day.
...but so does renting a place!
Even though when renting a place all of your expenses boil down to the amount you pay your landlord for staying put, there is more than meets the eyes. In recent years, rent prices have been steadily growing. If you are paying $1,000 for an apartment today, expect to pay a few hundred more in the years to come. And especially if living in a populous and metropolitan area.
Besides, when renting a place, people tend to move more often. There is nothing holding them backs as they are not attached to one place. And when moving, you know you will have to look for different assistance options at your disposal as you will need the help of professionals. As you already know, moving companies are not exactly known for being cheap, and hiring them every year or so will be detrimental to your budget. On the other hand, being able to pick up and go is a huge advantage for some people. If you are one of them, being a homeowner would be too big of a burden for you to bear, as your adventurous side won’t agree with such a big responsibility. Take that fact into account when deciding whether to rent or buy.
When renting, you are always playing by someone else’s rules
As you might have been able to figure out for yourself, drawing one final conclusion won’t be easy. In general, it’s always advisable to buy a property instead of renting one if planning to move for a longer period of time. Even if your plans do change down the road, you can sell your home and still get your money back. But, before you decide you want to buy a property, you first need to make sure you can afford it. There are plenty of costs that come with being a homeowner, and they could make your head spin. Then again, so can the fact that your rent could easily go up and turn out to be incomparably more expensive than any mortgage. In the end, it all comes down to you and what you can and cannot afford. Should I rent or buy? That’s something only you can answer, as you are the only one that has an insight your personal life, as well as your financial affairs.
For more professional advice from a property management company on the benefits of buying vs renting, contact Lamacchia Property Management today! We’ll be happy to answer any questions you may have, and achieve your real estate goals.