Buy vs. Rent a home?! It’s the life altering question we all ask ourselves and here’s what you need to consider first before answering that question for you!

This question does require thought and evaluation, while the costs is quantifiable most of the pieces of our decision are not easily measured. Such as cost of home ownership, stability, financial predictability, growing home equity and flexibility. Let’s dive in further to each of these important factors.

1. Cost of Home Ownership VS. Renting

The first factors in cost are how much can you afford monthly and how much money are you going to need for a down payment?! Depending on the property will also dictate how much maintenance will cost as well and should be factored into your budget and other costs which would be case by case. The first step is to speak to a reputable mortgage lender to know how much you can afford each month, how much you would be approved to buy and what other factors or fees monthly should be considered. If you need a reputable lender, feel free to reach out to our team and we would be happy to connect you. Once you have spoken to a mortgage lender and you know what would fit your budget then the next step is look at homes for sale and see what is on the market now and if those homes would be preferred. Then find rentals that you prefer and compare the costs of rent, deposits and other factors with renting. Now compare both options and determine which is best for you with your budget. Now most of the time the budget for owning makes more sense but many other factors go into deciding so let’s take a look at the other factors.

2. Stability

Our value of stability usually has to do with our family status or on the value we hold on the area. Such as schools for your kids and your commute to work. The challenge with renting is that at any given time your landlord or the owner of your building could raise your rent or decide to sell your home. When renting and changing location each year you might have unstable schools, commutes and locations. By buying you do have the stability in knowing you will be in that area, schools and same commute daily and yearly depending on how long you want to stay and you don’t run the risk of higher rent costs or forcing to move because a landlord wants to sell the home. To be fair, some families like changing areas and moving often and that’s why it’s not a one size fits all factor and stability is different for everyone. It’s up to you to decide what is best for your family and needs.

3. Financial Predictability

With a mortgage you are being qualified by a lender that is certain that based on your income and debt that you are able to afford your home payments in the foreseeable future. With renting you can’t control rising rent rates or deposit fees. If you have to move because a landlord decides to sell or you can’t afford the new rent costs then you now have unpredicted moving costs, deposits, fees and finding a new home that you can afford in an area you want to be in. These are all factors and personal things to consider and be prepared for when renting vs. owning a home.

4. Growing Home Equity

As the famous quote states, “90% of all millionaires become so through real estate.” In 2019, home owners in the U.S. had a median net worth of $255,000, while renters had a median net worth of $6,300. If all else is equal and you just can’t decide which is best for you then this should help you decide that owning a home is building your own wealth versus your landlords. This is just a piece of the puzzle when deciding but it is a very important factor to be considered.

5. Flexibility

Renting offers the flexibility to move anywhere without having to be stuck or selling your home and this can be an important factor to consider as well. With owning a home you have the flexibility to make it what you want and improve the value with updates and upgrades that will enable you to sell your home for top dollar in the future. Which is more important to you and your flexibility?! That’s something only you can decide!

So is buying or renting best for you?! That depends on YOU and what is most important in each of these categories to YOU! We hope we didn’t make it more difficult to decide but instead gave you the clarity and understanding to make the best choice for you! Clarity is power and we hope we gave you the tools and questions to decide which makes more sense for you and your goals!

If we can be a value to you and consulting with you in regards to your specific situation please email us at info@rphomegroup.com and we would love to help! Click here if you want to view homes for sale in Northeast Florida.