Most people think buying a home is the American dream, a no-brainer, and one of the ‘requirements’ of entering adulthood … but there may be reasons renting is a smarter option.
Now, when the ‘Should we buy a home?’ conversation first arises, you’ll most likely want to make a “pros and cons” list, will feel you’re at a ‘crossroads’ of sorts – and will spend hours on end in an Excel spreadsheet calculating costs and expenses.
Oh – and did we mention you might possibly have a small panic attack…
We said might… 🙂
It’s a huge decision, a huge investment, a huge change that comes with an array of responsibilities. At minimum – it’s a game changer that not only will have you thinking about buying curtains and fixing faucets – but about your career, what you ultimately want to do with your life, where you want to live, and the number of kids you plan to have.
Have we scared you yet? 🙂
We know it’s a lot to think about, which is why we’ve made the executive decision to help make this decision easier for you!
That’s right – It’s your lucky day, friends…
Out of the goodness of our hearts, we thought we would save you the trouble. We’ve done the math, and we’re excited to share some insight on why you should stick to your guns if you don’t feel ready to buy, and throw a few numbers your way to help you feel better about it.
So, here goes!
One of the most common misconceptions people have about renting versus buying is the fact they think they’re throwing money away when it comes to paying rent, when they could be building equity as a homeowner.
The truth of the matter is, during the first five years of owning a home – more than 80% of your monthly mortgage payment is interest… AND almost a third of homeowners move within five years anyway, before they’ve even had the chance to start building any real equity.
So, if that’s one your main concerns – you might want to reassess!
Plus, if you factor in the cash homeowners pony up to put their homes on the market in the first place, for home repairs, insurance, and taxes – most would have saved money renting anyway.
Now, this probably goes without saying… but if you’re worried about the risk-factor involved in buying a home – renting is a smarter option tenfold.
As a renter, you’ll most likely be care-free throughout your stay – whereas your days spent as a homeowner won’t necessarily be as painless.
It’s nearly impossible to predict whether a certain house in a certain market will appreciate. If prices fall even the slightest bit, and you’ve taken out a low mortgage, it’s possible you will end up owing more than your house is worth.
Additionally, when you choose to rent, instead of investing in one single entity, you have the option to invest in a wide variety of bonds, stocks and mutual funds. You’re also still able to invest in real estate through Real Estate Investment Trusts (REIT), which is kind of cool.
Lastly, if you’re on the fence about buying, the convenience factor alone in renting might be enough to sway your decision!
Renting requires no snow shoveling (for those of you who have to battle through those brutal winters each year,) no sanding, no prior knowledge of plumbing, painting… or even mowing the lawn! (That’s hard to believe isn’t it?)
Renting means relying on someone else to take care of all of your maintenance needs and the costs associated with them. There’s no denying THAT is a great feeling.
Now if you’ve made up your mind and feel you’re ready to take the plunge, the more power to you! We really just want to inform all of you ‘on the fencers’ as to why renting might be a better option – for now anyway.
That being said, if you’re looking for your next apartment, be sure to check out our BH communities here.
We’re always looking to expand our family.
Happy apartment (or house) hunting, friends!
Have a great idea for our blog?
E-mail it to us at BHNews@BHManagement.com. We would love to hear from you!