Wednesday, August 3, 2016

Should You Buy Or Rent A Home

When you rent you are at the mercy of the landlords wishes.
Why should you buy instead of rent? Both options have there pros and cons...

     Lets consider the positive side of buying first. You get to experience the joy of home ownership. The longer you keep your home and the more you improve it the more it is worth. Statistically owning a home is the largest wealth accumulation most Americans will achieve. For most of us accumulating wealth is at the top of our goals list. Owning a home gives you that chance to reach that goal. It could also benefit your children should you choose to hand the home down to them.

      As the cost of rent continues to rise you can avoid those constant rent increases. This year in Colorado Springs we have had the largest increase in the nation. It went up over 11 percent according to As a homeowner, if you don't take out a second mortgage, your mortgage payment will stay fairly constant. What that means for you: you are able to save more money because your mortgage payment stays about the same. Those that rent continue to pay more for where they live. It becomes more and more difficult to keep up even with a yearly raise from their employer.  The raise you receive will slowly begin to impact your life for the better.

     Now for the downside to home ownership. When something like the furnace or refrigerator goes out it will be up to you to fix it. You no longer have the benefit of calling the landlord. There is up keep on the house that will need to be done. Sometimes the upkeep is as simple as keeping the lawn mowed and the weeds out of the flower bed.  Less simple would be painting the house or replacing the carpet. You may be able to take care of some upkeep on your own which will help keep costs down. You will want to put some money away to be able to cover your homes needs and avoid running up credit cards for unexpected and unwanted surprises.

     A subject that does not get thought about is taxes and homeowner insurance. Yes you will hear about it at the closing table, but because it is wrapped into your mortgage payment you wont think much about it.When the value of your home goes up so will your property taxes. Likewise when your property value goes down your property taxes will eventually go down as well. When the taxes change you will get a notice of payment increase or decrease from the mortgage company. In most situations it wont be a big difference. Your home owners insurance can be another reason for a change in payment. In Colorado Springs after the fires happened most of us saw a huge spike in the cost of our mortgage insurance. Withing two years mine nearly doubled. Most of the time your insurance will only raise slightly. You will want to keep in mind during the course of your mortgage the payment may go slightly up or down depending on the circumstances. Be prepared for change.

     When it comes to renting there isn't as much to consider. The best part of renting is that if anything major needs to be done it falls in the hands of the landlord. If  your lucky the land lord will pay to have someone tend to the yard freeing you from that responsibility as a renter. If you don't plan on putting down roots renting frees you to just move along when your lease is up.

     The downside to renting is that you are paying off someone else's mortgage. Any value in the house is that of the owner. When your lease runs out your rent may go up or you may have to move if they don't renew the lease with you. The house may get sold while you are renting forcing you into another situation where you have to move. I had it happen to me twice while I was a renter.

     When you rent, you put down a deposit. It seems like no mater how clean you leave a place the landlord doesn't give back the full amount you gave to them. Do you have a pet? You may not get to keep your buddy. Some places do not allow pets. There are now landlords charging pet rent. My personal opinion is that it is just ludicrous and just another way to bleed people for their hard earned money. Renting just doesn't give you the same freedom as being a homeowner.

     When you have made your decision to to purchase a home I will be here to help you every step of the way. You can start keeping an eye out for houses by browsing the neighborhoods you are considering at my website You can create your own account there for free by signing up. You can get new listings automatically sent to your email to make it more convenient to stay on top of what is available in the housing market. I hope to hear from you soon.

Are you not sure where to start when your ready to buy? This article may help:

You pets will enjoy your new home as much as you do!
Pets need a place to feel safe and run free.
Home ownership can help fulfill that need.

1 comment: