Why Rent When You Can Buy?

thinking of home
Are you a first time homebuyer? The time-honored question that every adult faces at some point is “Should I rent or buy?” While it’s true that there are certain costs involved with home ownership that you will not have with a rent payment. However, due to the nature of equity, the pros to buying a place to call your own far outweigh the cons. Here are some tips that make it easy to decide!

1. Are you going to be staying in the same place for at least 5 years? Then buying a home could make sense. If you plan to nomadically move around, or travel a lot for work, then the hassle of owning (i.e. selling and buying often) would not be worth it. Plus, you may not get the equity or investment back out of the home if you are turning around to sell after just recently purchasing. But if you are planning to stay in one place for a while, there is no doubt about the benefits that come from investing into home ownership. Building equity can help set you up to take that next step into a bigger purchase or even just providing you with an asset that could be rented out, giving you some passive income!
equity in houses
2. Can your budget accommodate the mortgage payment? Take a look at the cost of renting vs buying. It’s true that a mortgage payment may be higher than rent. There will be certain expenses added to your mortgage payment that may include property taxes, homeowners insurance and mortgage insurance etc… However, if your budget allows, the mortgage payment will actually allow you to build equity and acquire a tangible asset! When renting, you’ll never see the money you spent in rent payments ever again. Just imagine every month that rent payment is money flushed down the toilet, while the house payment over time is providing a huge return on your investment! Owning your home ensures you can build wealth by eventually attaining an asset that can be passed down, rented out or used as equity into your next home purchase. So, it’s worth the time to seriously consider the cost of rent vs a mortgage payment.

Kitchen interior
3. Weigh the risks and costs of maintenance and upkeep costs. There are certainly increased maintenance and upkeep expenses that come with home ownership. There will be things you will need to do to keep the home in top condition. Things like checking air filters, testing fire alarms, landscaping, painting, fixing plumbing or electrical issues. These are things that should be allotted time and money for when considering a home purchase. However, if you are prepared for a certain amount of upkeep/maintenance, it can be VERY rewarding to have a place your very own, that has your stamp on it. Renting a place often comes with a laundry list of restrictions, leaving you unable to do remodeling or redecorating. But home ownership allows you a sense of freedom, and the ability to mold your home to your tastes.

4. Do you have the startup capital needed for purchasing a house? So, you have determined that, yes, you plan to stay in one place for a while. You also feel comfortable in your budget with a mortgage payment and additional allowance for maintenance and upkeep. Then, of course home ownership is a given! However, you should consider the upfront costs to buying a home. You will need to be prepared for a down payment, moving costs, buying new furniture, closing costs, realtor’s fees etc… The great thing today is that if you are a first time home buyer, there are many programs and loan options out there available to help you with startup capital! So, if you don’t have a down payment, don’t let that hold you back. Finding a knowledgeable lender that can help you assess loan options like USDA/RD, VA, and FHA can help you navigate your options. There are also financial assistance options available here in Wyoming for downpayment assistance and closing costs!
purchased home with keys
So, if you feel that you are ready to own a home, reach out today for a free consultation and discussion! I would be happy to help talk you through the steps above and get you connected with the right lender. And remember- there are many financial assistance options available for first time home buyers! Reach out- let’s chat!