Renting vs Buying a Home
Renting vs buying a home or owning vs renting, which is better?
Many people will tell you that buying a home is better and smarter than renting. This is because when you rent, you are throwing away money that will not result in equity. You are paying for someone else's mortgage and in the end you don't own the place that you've been living in.
But before you decide to buy, look at your lifestyle and your needs instead of agreeing with people's opinions about home ownership.
Can you afford it?
Do you already have at least 20 percent for down payment? How is your credit score? Can you afford to pay the mortgage on time for the next 15 to 20 years?
Being a single woman usually means you have only one source of income. If you were to lose your job, you might face difficulties in paying your mortgage unless you have sufficient savings or another source of income. But if you rent, you can easily relocate and rent a cheaper home.
You may also have to think of the maintenance cost. When you rent, you are only responsible to pay for minor repairs like changing light bulbs or maintaining the lawn if you are renting a house. But if you own a home, you have to think of property taxes, insurance and other fees.
What are your long term plans?
Do you plan to reside permanently in the area that you have chosen or do you see yourself relocating? If you were to get married, do you plan to have your spouse move in and start your family at that location? Or do you plan to sell it off or rent it out after some years?
Are you comfortable with renting?
How much are you paying for rent right now? Add it all up and see if it's cheaper to buy than to rent. If you have been renting and are comfortable with it and don't wish to pay extra on maintenance, repairs, taxes, insurance and interest on the mortgage, you may just continue renting.
Whatever it is, when it comes to renting vs buying a home, it's more of a personal choice and affordability. If you really want to own a home but can't afford it right now, you can rent and save up so that you can buy one in the future.
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