March 21, 2022
You and your partner recently received promotions. While your bank account is growing, you’ve noticed that your apartment has gotten smaller.
You both could use a proper home office instead of working at random coffee shops with decent Wifi; your home gym equipment is beginning to be an eyesore and needs its dedicated space; your partner has wanted a coffee corner to put her machines and whatnots for the longest time.
You are both due for a bigger place and commit to a move. But you’re not sure: is it better to rent or buy a house?
You’re aware of the rules: no unauthorized renovations or remodeling. But there’s a compromise – the landlord takes care of the repairs, like when the sink gets clogged.
Owning a home is fresh territory, but you’ve done your research. A downpayment is usually required. The larger your downpayment, the better monthly terms you will have.
Government assistance programs and other mortgage lenders offer zero down payment for qualified homebuyers, such as the Chenoa Fund, USDA loan, and VA loan.
Contrary to popular belief, interest rates are competitively low. Your monthly mortgage payment could be a couple of hundred dollars lower than your current rent. Picture making the same monthly payments for the next thirty years without worrying about rental increases.
After paying that off, the home is officially yours. By that time, your house’s market value has possibly increased, and you could sell at a profit if you are planning on selling your home.
And this is the best part: you are free to make it your dream home. You can customize the bathroom or kitchen to your heart’s content. Create as many personalized rooms your house will allow. It only makes sense to make the space exactly how you want it to be because you will live in it for a long time.
Keep in mind, though, that the upkeep and repairs will be your responsibility as well as the closing costs when you first purchase a home.
Is it better to buy or rent? Let’s look into it more.
Wealth-building is one of the reasons why buying a house is better than renting. You may not realize it, but buying a home boosts your net worth and credit score.
Real estate properties only appreciate in the long run. Home prices can rise by more than 10% in a year alone, building equity or value for you. You can potentially earn a tidy sum when you decide to sell on the housing market down the line.
A mortgage will appear on your credit report. When other creditors see that you make your mortgage payments on time, they will likely approve your application for a new line of credit. Maybe you need to take out a loan for a new car or a business venture. These are a few explanations why buying is better than renting.
Why is buying a house better than renting? No one wants to uproot their life every so often. Most of us wish for tenure at work, lifelong friends, and long-term relationships.
All of these are possible with a permanent residence. You also get to have a sense of pride and joy when you buy a house. Having a place you can truly call your own makes for a happier, more satisfying life.
It can be a wise financial decision to rent out the basement or a room in your new home and occasionally offer it on Airbnb. You can use the rent and Airbnb payments to pay off your mortgage faster. A 15-year mortgage sounds better than a 30-year mortgage. You won’t have to negotiate or ask permission from a roommate or landlord.
You have probably gathered that buying a home holds the upper hand in renting vs. buying. When it comes down to it, your ability to make the mortgage payments is the determining factor if you should buy or rent. Experts say you should only spend between 28%-40% of your gross monthly income on mortgage payments. A rent vs. buy calculator can paint a better picture of when buying a house is better than renting for you.
Let’s say your budget can afford the monthly mortgage payments. However, you still have to pass the pre-approval screening of the bank or lender. How is your credit report or employment history looking?
Have you saved enough for a downpayment? Please note that you still have to have funds left to cover insurance, utilities, repairs, and other living expenses. Is owning better than renting when you know there are always unforeseen costs in homeownership?
Maybe you’ve got the finances covered. But what if you’re going through a sensitive pregnancy or can’t afford to move far from work or school? Finances are not the only consideration.
Perhaps your job is unstable, or you’re content with where you are now and not ready to commit to the responsibilities and upkeep. Is buying a house better than renting for you?
There’s a reason why they call it forever homes. It might not be suitable to buy a house when you’re looking into an internship abroad or moving to another state. But if buying a home fits well with your current work, the schooling of the kids, and keeping close with friends or relatives – go for it.
Happen Houston can connect you with experienced agents and the right financial experts and lenders. We will make your dream happen by finding the home with your must-haves and in the community you want.
When we find “the one,” we will help you negotiate a solid offer to have greater chances of being selected by the buyer. We’ll also be with you when a licensed inspector evaluates your future home to ensure you will move in with peace of mind. From getting financial approval to walkthroughs, and signing closing statements, expect Happen Houston to guide you every step of the way.
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