For a very long time now, there has been a back-and-forth battle over which is better, renting or buying. Of course, those who know both sides can make compelling arguments to sway even the most diehard listeners. But why is this even a thing? Simple. Money. It all boils down to money and how people consider it “well spent.” Often, you’ll hear that every payment you make in rent is money that will never help you further your financial standing. While it may seem true in black and white, it isn’t always the case.

Why Some Choose Renting

Regarding where you live, some people are very interested in the ability to “try out” a certain area. If it is a fit, they can work on staying there longer; if not, they can move on and try to find another place to settle in that is more what they are seeking. There is also the fact that some people aren’t in the financial place at the given moment to obtain the funds necessary to buy a new home. Renting a house allows you the time you may need to work on your credit to get that new dream home, all while providing a stable place for you and your family. Not to mention that your landlord is responsible for the time and cost of repairing and maintaining most of the home, not you!

Home Ownership Fees / Costs That Do Not Help Equity

When you decide to become a homeowner, it is almost like adding another child to your family. There are numerous aspects of the home that you must maintain and fix when they need repair, not to mention the costs involved in just obtaining the house.

Some one-time costs are origination fees, realtor fees, and closing costs. Origination fees cover paperwork, research, and calculations for your home loan, usually about 1% of the final home loan. Realtor fees can also be pretty costly if you can’t get the seller to pay them for you. Closing costs range from 2-5% of the total home loan and cover inspections, appraisals, fees, and more.

One-time costs aren’t the only things you have to prepare yourself for. There are also annual costs that add up over time and do nothing for your equity. These include mortgage interest, homeowner’s insurance, property taxes, utilities, mortgage insurance, and possible condo or HOA fees, and on top of that, you are responsible for all maintenance and repairs.

How To Decide Which Is Right For You

When it comes to renting versus buying a home, only one group of people can tell you what the right decision is for you, and that’s you and your family. Take the time to learn about the costs and fees associated with obtaining a home mortgage, and also learn about your credit score and how to improve it to get the best home possible. Outside of money and cost, think about where you and your family are at the moment. Is settling into just one location something that fits your current dynamic?

As you can see, there is no ‘one size fits all’ solution when deciding whether to buy or rent a new home. At Buckeye Northwest Realty, we have many rental properties you can choose from while taking the time to make the best decision for you and your family. Contact us today to learn more about how we can help you with renting or buying your new home.