Home Sweet Home: Rent or Buy? How to Know What is Best
Renting may be a better option than buying home, but it really depends on where you live. In some areas, it is still a better investment to buy a home, but in many more cities, it is wiser to rent a home.
Statistics vary from state to state, so where you live definitely plays a role in whether it is best to rent a home or buy. If renters invested wisely, they would likely come out ahead than those purchasing a home because of all the additional costs such as tax and property maintenance.
To buy a home, you must review your finances and plan to pay 20% down, decide the amount you can afford for monthly mortgage payments, homeowners insurance, the cost of major utilities, and the upkeep of the property. Renting a home means affording the monthly rent payment, the electric bill and maybe cable, and renters insurance.
The cost of owning a property depends on where you reside, so make your choices wisely. Understand that qualifying for a loan is not guaranteed, and where you choose to live can make all the difference in whether renting or buying is the best solution.
When choosing a home in any state, be sure to research the housing market thoroughly before making a decision to rent or buy a home. For both outcomes, a solid credit score is mandatory and income is equally important. Look at the numbers where you live and make the best choice for your situation.
Currently, the housing market holds promise in areas of the country like Southern California and New York. However, in many places it is still cheaper to rent than to own because there are no additional costs of property insurance and taxes. Research the real estate market in the neighborhood of interest to estimate cost differences, which will help determine if renting or buying is the best choice.
For real estate expertise, contact the Zwahlen Team. We know real estate and are active in the community of Danville, California. We know what individuals and families desire and what they fear. We will dedicate ourselves to finding your affordable home that brings you satisfaction and peace of mind.