There are a variety of variables to consider when deciding whether to rent vs buy a home. LandLordStation.com provides information that can help you, as a future renter or home owner, make the very important decision of whether to rent or buy a house. There are advantages in paying for a mortgage vs. renting a property and disadvantages in a rent vs buy situation. We advise that you carefully consider some of the information we provide before you decide.
Ask yourself these questions before determining whether to rent or buy a house. If deciding whether to rent vs buy, ask yourself how long you plan to live in the desired location. For example, are you subject to transfer at your job? If so, will your employer help you sell your home if you are transferred? Would you want to keep your home in that situation and convert it to a rental property? There are a variety of variables that you can use to determine whether it would be better to buy or sell your property if you should be transferred. LandLordStation.com has information to help you determine the answer to these questions.
When you decide whether to pay a mortgage vs. rent a home, it is important to determine what your long range plans might be. Are you a newlywed who plans to start a family? If so, does the house you want to buy have enough room for a growing family? Does the area have the schools you want to send your children to? Are you retired? Does the area have the amenities you desire? Consider these questions when you determine whether to rent vs buy.
If you are trying to decide whether to rent or buy a house, consider the fact that any repairs that are necessary for a home you purchase are your responsibility and will have to be paid in addition to your monthly payment, insurance and taxes. If repairs or improvements need to be made to a purchased home, do you have the addition funds for those items? When you rent, costly repairs and maintenance are generally the responsibility of the landlord.
When considering whether to rent vs buy, ask yourself how much you can reasonably afford to pay to own a home. The Federal Housing Administration currently limits mortgage payment to 31 percent of income. Many real estate professionals recommend spending no more than 28 to 30 percent of your income on a home. When you own a home, the monthly payment is only part of the costs. You also have to pay insurance, taxes, homeowners’ or condo association dues. You have to pay for equipment for any maintenance you perform yourself and for labor when you have to hire plumbers, electricians or other professionals. Although this seems like a lot, all these factors go into paying rent for a property. Therefore, if you stay around your desired monthly budget, owning a home is comparable in price to renting a home.
On top of calculating costs, if you want to determine whether to rent vs. buy, consider the tax implications of both. At this time, mortgage interest is a deductible expense. That could always change in the fluid economy of today. When determining the tax advantage of rent vs buy, it is always good to consult a tax professional rather than to assume you understand the tax consequences.
If you are looking at a property to eventually become a landlord, consider the surrounding neighborhood and the amount of sweat equity that must go into the house to make it a valuable investment. When you make the leap to become a landlord, make sure that you visit landlord station to list your property and screen your tenants as well as gain valuable information that will give you an advantage.
Deciding to rent or buy a house can be a big decision with a variety of variables to be considered. Renting a house makes it relatively easy for you to move should your circumstances change. An industry rule of thumb is that people tend to live in a house for 4 years. Although you do not have a crystal ball, determining whether to rent vs buy is easier when you take advantage of the information available at LandLordStation.com.
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