Sunday, September 26, 2021

Cost Of Owning vs. Cost Of Renting Your Home

When it's time to find a place to live, you are faced with either buying a home or choosing to rent a property. Since the decision you make will impact you financially in many ways, it's important to know as many details as possible regarding the costs of owning or renting a home.

You're Making a Payment Either Way

Whether you buy a home or decide to rent, you will be making a monthly payment either way. While many people tend to think they are throwing away their money by paying rent month after month, that's not necessarily true. 

Even if you are not building up equity with your rental payments, you are still paying for a fine home that you can enjoy.

Unexpected Repair Costs

When you rent a home, all the repairs and the costs associated with them are taken care of by your landlord. Thus, as a renter, you know exactly how much money you will spend on your housing costs each month. However, it's not like this if you are a homeowner. 

While one month may find you making only your mortgage payment, the next month may have you calling a roofing company for the leak you have. 

If you’re wondering about the frequency of people having leak issues, it may be worth contacting a local roofing company for their insight to see if you are at risk. A roofing company can install a new roof, which may cost you money that you weren’t anticipating.

Rent Increases

When you rent, you may go years paying the same amount each month. However, when your lease is about to expire, your landlord may come along and choose to raise your rent. 

If the increase is steep enough, you may be forced to move and find more affordable housing options, greatly disrupting your life. But if you own your home and have a fixed-rate mortgage, you can count on your monthly payments staying the same each month until the mortgage is paid off.

A Home Can Lose Value

When you buy a home, you likely assume it's a given that it will increase in value substantially as the years go by. While this might happen, it is by no means guaranteed. 

For example, if a major employer in your area leaves town, your neighborhood could quickly decline, impacting property values. Should you instead be renting, you won't have to worry about this issue.

If you are seeking stability and want a place to call your own, having a home and the costs that come with it may be your goal. Yet before doing so, carefully compare the costs of owning vs. renting to make sure your final decision works best for you and your family.

About the Author

Anica is a professional content and copywriter who graduated from the University of San Francisco. She loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she's used to putting things to a vote. She recommends PM Roberts LLC for your roofing needs.

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