Renting Vs. Buying A Home
Are you weighing the rent vs. buying decision? Both have upsides and drawbacks. The answer depends on multiple factors, including finances, long-term plans, and the real estate market in your area. Here are a few questions to decide whether or not to rent or buy a home:
- How long do you plan to stay in the home?
- Do you want stability or flexibility?
- Do you want to be responsible for repairs and maintenance?
- What are your financial, career, and family goals?
Renting
Renting vs buying is often decided on how much the cost will be. When renting a home, your monthly costs are fixed for the term of the lease. Monthly rent may or may not include utilities such as electricity, gas, cable, or internet. Most leases require the first month of rent, the last month of rent, and a security deposit in order to move into your new place. For an apartment that costs $800, it would cost you around $2,400 up front. The nice part about being a tenant to a landlord is that they are generally responsible for fixing any repairs with the property. There is more freedom to be mobile and flexible if you plan on moving soon. Furthermore, there is no need to worry about the value of the home going down since you are only renting the place.
Owning
Buying a home can be a sound investment in the long run. If the prices of homes in your area have been going up, buying a home now can help you stay in a neighborhood that will be priced higher in a few years. Even if you don’t plan on staying long term, a sharp rise in local property value could mean a large profit when you sell. Another reason to buy a home would be if you were willing to rent out part of all of your home, should your plans or finances change. Lastly, if you are willing to put in some elbow grease and fix up the home, the value of the property could rise over time. Giving you a nice return on investment in the future.
Wilson Property Management
As we can see, there are advantages to both renting and buying a home, it simply depends on whether you plan on staying at that same location for the long term or short term. It is an important decision to make and calls for a solid understanding of your goals. If you need more advice or have any further questions regarding renting or buying a home in Raleigh, NC, feel free to Contact Us. Established in 1989, Wilson Property Management, Inc. (WPM) is a full service management company offering both homeowner association and rental management.