As 2021 comes steadily closer, most people are eager to end 2020 (which has been a very bad year for everyone) and start fresh in the new year. For many people starting fresh means deciding between having a monthly payment on a house that they purchase or deciding to pay monthly rent instead of an apartment or rental home.
While it’s still an uncertain and scary time for the world as a whole, with unemployment rates through the roof, businesses closing, and survival uncertain because of the COVID-19 pandemic, people’s thoughts are still turning towards moving. Moving means you need to decide whether it would be better to invest in purchasing a home and being tied down with mortgage payments through your lender or renting instead so that you’re free to move when the need strikes. In this article, you can find a few tips on whether buying or renting your home is the better investment.
Buying Pro: Every payment brings you closer to owning the home.
When you decide to purchase a home, you know that every payment you make brings you closer to the home is yours forever, if you choose. When you rent, you’re paying someone else’s payment, instead.
Before you head out to purchase your first home, you need to take the time to start comparing home loan rates through different lenders. When it comes to buying your home, saving on a home loan should be your first concern. You want to make sure that you have a good credit score, as that will help you get a better mortgage rate and can also determine the loan amount you qualify for if you qualify at all. Be careful about the type of loan you apply for as there are different options, from adjustable-rate mortgages to conventional loans and more.
Buying Con: You have more expenses and have to fix everything.
The biggest disadvantage of buying a home is twofold. You’ll have more expenses and you no longer have a landlord to fix the things that are broken. While renter’s insurance was pretty inexpensive, homeowners insurance isn’t cheap either. You’ll also have to fix anything that goes wrong with the house, from the HVAC unit to the roof or from the plumbing to a tree that’s rotting in the yard.
Renting Pro: You don’t have to pay for things to be fixed.
If you’ve decided to check into month-to-month furnished apartments in Austin while you’re deciding whether to buy a home or not, you’ll end up with a lot of amenities you might not have otherwise. From fireplaces to smart TVs and from two to three-bedroom apartments that have the furniture already included you’re going to be set.
You also don’t have to worry about fixing things that are broken, as the landlord in the apartment complex you’ve chosen takes care of that for you. You don’t have to worry about dealing with the bank to try to find the lowest interest rate on a loan either, don’t have to think about loan payments or mortgage payments, and can still live in a good neighborhood without being a homebuyer. You don’t have to worry about mortgage insurance either, though it’s always a good idea to get rental insurance on any place you live in.
Renting Con: You can’t always decorate the way you want.
One of the biggest disadvantages of renting a three-bedroom apartment or any rental home is that you usually can’t change things up the way you would like. You can decorate, of course, but you can’t change the color of the walls or tear out the carpeting and put in hardwood floors because the rental doesn’t belong to you.
These are a few of the pros and cons of buying versus renting to help you decide which would be the better investment for you. Do your research, take your time, and choose wisely.