Should I Rent or Should I Buy a Home today?
Is renting or owning a home in The Woodlands Texas better?
To make the right decision, there are a number of things to take into consideration such as your finances, lifestyle, the economy, and the housing market in the neighborhood that interests you.
The Housing Market and You
It’s always wise to consider the economy and what’s happening in the housing market where you want to live when considering your options on buying or renting. Take into consideration anything in the area that has contributed towards an economic downturn such as the price of oil, or the building of new hospitals. Buying during an economic downturn can work in your favor if you aren’t affected and if you plan to stay long term. On the other hand, if you will need to resell in a few years, it may be problematic.
If there are many houses on the market that aren’t moving, ask why. If the area you’re planning to move to is a hotbed of activity and houses are selling high and quickly, that is also important information to know. You might have to buy high but if the upward movement continues, you might just turn a pretty profit some day.
If you have a secure job, plan to stay in the area long term, and if there are plenty of houses available to buy, then it may make perfect sense to purchase a home. Ask yourself what would happen if you needed to sell your home quickly due to a layoff, job transfer, merging homes perhaps through marriage or the like. Would finding a buyer in the current market be complicated? If it all seems to add up well, then home ownership is probably a good plan.
Benefits of Renting
Renting can make sense if you feel buying is risky and that you might get stuck with a house you can’t let go of easily. Renting may also be a wise choice if you can’t find the home you’d like for the right price. It can become troublesome if you choose to settle on something that doesn’t fit your plan. Moving is costly, and it’s not so easy to just change your mind about a home you’ve bought. Renting might just allow you the time you need to wait for the right house to appear on the market.
If you want only to have one amount to focus on financially each month where housing is concerned, renting will give you that option. When renting, you will forgo the extra expenses of property taxes, mortgage interest, house insurance (you might want to have content insurance), utilities in some cases, and other upkeep costs. Always clarify with your landlord who is responsible for what expenses and repairs. Saving these costs results in money you can keep in your pocket or spend on other luxuries.
If you have no money set aside for a down payment on a house, have questionable credit prohibiting you from gaining a mortgage, tend to move around, or temporary accommodation works better for you, then renting a home in The Woodlands TX might be the answer.
When looking into rentals, have an eye out for that special diamond in the rough. Some homeowners who can no longer afford to pay their mortgage and associated expenses will move and rent out their houses. Others rent out properties for investment purposes. If you could rent a home in the community of your dreams that is better equipped or larger than one you could afford to buy on your own, then renting might be a great option for you.
Renting a house, condominium, or apartment is always a good option when you aren’t sure of your future or what type of home you really want or when you want to save up a little money. Renting can be a good stop-gap measure that helps you evaluate the city to see if it’s somewhere you’d like to live long term. If you’ve started a new job that you want to feel out first, or if you’ve had a recent breakup or another change in circumstances, renting is probably a smart choice. Renting allows you time to evaluate your spending habits so that you avoid getting in over your head by all the associated costs of home ownership.
Benefits of Owning
The best part of home ownership is that you are building homeowners’ equity. That is as long as you’re paying more than the interest, and as long as you’re maintaining the home so that its value doesn’t plummet. The money a renter puts out is equivalent to throwing money out the window. Home ownership is more of a long-term investment. If there is an upturn in the market and prices rise, when you sell you could stand to make a significant profit.
If you own your home, you are free to renovate or decorate it as you wish. You can change things, put in new appliances, re-do the washrooms, finish the basement, you name it. There is no landlord breathing over your shoulder. There is no rent increase. The home you purchase is yours long term. No one is about to throw you out unless, of course, you fail to pay your lender.
Start with Planning
Rent or own, there are reasons for both options. Look at all the factors included and plot a timeline for your choice based on your personal finances, what’s happening in your life, and the current market. Use time as a renter to save up a nest egg for a home purchase. Visit various areas of the city to get a feel for what might work best for you. Visit open houses to see the types of houses that are in your price range.
Smart home buyers do their homework and make informed decisions that look at the bigger picture over a number of years. In their lifetime, most people have done a little of both renting and owning. There is a time to rent and time to own, and if you’re fortunate, you can experience each at just the right time.
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