Why Rent When You Can Buy?
Rent is expensive, mortgage rates are low, and you have a secure well-paying job, so why not buy a house? No more dealing with a landlord and you can paint your home exactly to your taste. Don’t like that wall? Knock it down and make it open concept. You are now building equity! Maybe you can also have a roommate who is paying part of your mortgage!
Nothing is free in life, so what is the true cost of owning a house? Aside from the financial commitment of saving up for a down payment, owning a home involves day-to-day budgeting for maintenance, repairs, renovations, property tax, and insurance. Owning also involves a greater commitment of time. Home maintenance can become a viscous cycle. Your evenings become filled with “to-do” lists: mow the lawn, water the garden, clean, paint, clear the dryer vent, and fix that squeak in the floor. It also becomes much, much harder to move.
If you are young and want to buy a house, ask yourself what you plan to do for the next 10 years. If you don’t have a plan for two years from now, buying may not be for you. Renting can save you time and money. Best of all, renting lets you move around freely, so you can find the community and job that is right for you. And if you are worried about falling behind financially by not buying, there are many alternatives investment vehicles other than real-estate. These can include investment in other businesses through stocks and exchange traded funds, or better yet, investing in the best business of all – yourself.
The true cost of owning versus renting goes well beyond comparing mortgage versus rent payments. The decision should be made by considering your values in life and where you want to go. What are your thoughts on the rent versus buy decision?
This post was written by Happipad