Is it always wiser to purchase a home, or should you consider renting? Today I’ll discuss.
Is it better to rent or own a home?
Here’s the deal: If you’ve owned your home for several years and you’re looking to downsize or you want to try and sell at the peak of the market, it could be a great opportunity to sell your property soon, knowing that the market may see a downward turn in the near future. That way, you could sell your home for the most money possible, take that cash, and then go live in a rental for a while to spare yourself the responsibility of home maintenance and so forth until you decide to make a new capital investment.
It is challenging to time the market correctly, though. If you’d like to figure out what your home is currently worth, I highly recommend you talk to a real estate professional (like us) to determine what your long-term goals are.
However, that still leaves us with the essential question: Should you buy or rent?
Understand that interest rates are very low today. The benefit of purchasing in this market rather than renting is that, with a home purchase, you’re likely not paying cash for the new home. Instead, you’ll probably get a mortgage, which has a fixed rate. That means your monthly payment will stay the same for the life of the loan. On the other hand, rents have a tendency to go up over time, so it may become less and less financially feasible to rent for a long period.
If you’d like to discuss renting versus buying in more detail and share your situation, or if you have any other questions, reach out to us. It would be our pleasure to have that discussion with you.