While owning a home is considered the “American Dream” sometimes buying is not an option. Young graduates fresh out of college with student loans to pay back and no money for a down payment can find it hard to qualify for a mortgage. Or for some, maybe poor credit history or not enough income can stand in the way.
But there are benefits as well as challenges to both. While renting doesn’t involve “pride of ownership” it does relieve the financial burden when things like the air conditioner goes out or the roof needs replaced. On the other hand, all those rent payments never go toward building any ownership in the home. For some the choice is preference (their job may require extensive traveling so they’re not home much and don’t want the worries of maintaining a home). But for others, they just don’t think they could afford to buy a home. BUT YOU MIGHT BE SURPRISED!
For instance, let’s say your current rent payment is $1,200 a month. For about the same monthly payment (sometimes even lower) you could potentially purchase a home for about $185,000 (based on financing options, interest rates, down payment, credit scores, taxes and insurance). Now instead of just “paying the rent” you’re building equity and value in your new home.
Whether you decide to rent or buy give me a call. I’d love to help you!