Real Estate 101: Renting versus buying
When it comes to choosing whether to rent or buy, there are many factors to take into consideration. Depending on your situation, there can be both pros and cons to renting and buying a home.Of course, making any decision that impacts your long term financial future is not going to be an easy one. When it comes to renting or buying a home, it’s important to consider the costs of a mortgage and any interest rates involved.
Depending on your situation, there will be both advantages and disadvantages to renting a home. Renting is an excellent solution if you don’t plan on staying in an area for long period of time or don’t have enough credit to have a mortgage. In fact, renting can be a good way to build credit. If you plan on staying in an area for long period of time, are looking at paying high renting costs, and have good credit that would enable you to get a mortgage, buying a home may be the better option. Depending on your interest rate, you may save money in the long run by buying a home instead of renting.
When making your decision, it’s also important to consider what bills you are and aren’t paying for. When renting, sometimes bills like water and electricity may be included. If you own your home, you’re responsible for all costs in addition to your mortgage payment.