Here are two things everyone should think about before buying a home.
Today we’ll answer the question, “What are the two things to consider when deciding whether to rent or buy a home?” This is a complicated topic, so we wanted to make sure you’re informed before making a decision.
The first thing to consider is how long you’ll be in your next property. Is this a one- or two-year move, or will you be there for five years or more? If it’s the former, you may want to lean towards renting the home. It’s unlikely that the appreciation will offset the closing costs of both buying and selling a home, so you’re probably better off renting.
“You can utilize your home’s appreciation once you sell down the road.”
If you’ll be three, five, or more years, talk to your mortgage advisor to weigh the costs. In most markets, this is usually the threshold where homeownership makes better financial sense than renting.
The second thing to consider is whether you want flexibility or financial stability. If you google “Difference in net worth between homeowners and renters,” there’s a massive gap. If homeownership is part of your retirement plan, it can greatly increase your net worth. Your home appreciates over time, and you can utilize that appreciation when you sell down the road.
If you have any questions for me about buying, renting, or real estate in general, don’t hesitate to reach out via phone (717) 216-0860 or email dave@davehooketeam.com today. We look forward to hearing from you soon.
