Home Buying Series, The House

Owning or Renting? Which one is for you? – Home Buying Series – Part 1

Happy Tuesday! Can you believe May is just a few days away?! It still feels like January to me!

Today I’m going to be talking about the difference between buying and renting a home, and which choice is right for you! Buying a home is a huge investment that you will be paying on for half of your lifetime, so its good to know whether this commitment is right for you and your needs.

Renting:

Short term leases that don’t usually require a commitment of longer than a year. You can move anytime after your lease. This is best for young couples starting out in life, college students, and families that move often. You typically have to pay a deposit upfront (usually one months rent) and between $200-400 deposit for pets, per pet (if you own any). The landlord/Leasing agency is required to make any repairs and upkeep the home and land. They are also required to pay the taxes and insurance on the home. You may still need to have your own renters insurance. Rent is usually higher than an average mortgage payment.

Owning:

Great for older couples and families wanting to settle down and invest.  When you buy, you need to be willing to stay in an area for a long time or be ready to deal with renting out the home to a tenant. There are no deposits required to buy, although there are fees that will be paid to finance your home. You are required to to hire someone or make any repairs, yourself, on your home and land. You have to pay homeowners insurance, taxes, and in some cases flood insurance. Mortgage payments are typically lower than monthly rent, in most areas.

 

Which one sounds right for you? Tell me in the comments!

2 thoughts on “Owning or Renting? Which one is for you? – Home Buying Series – Part 1”

  1. Most renters insurance policies will not cover flood damage. They will cover most water damage as long as it’s not due to rising water from a storm. If a pipe burst, or a tree falls on the house and rain damaged your personal property, then it will be covered. There’s also a part of renters insurance that people need to look at if they live in the city. Or if they are on city water/ sewer system. Although this could also go for homeowners as well. But I can only speak of renters insurance. I’ve had two different policies so far. The first policy didn’t cover if the sewage backed up into the home. The policy I have now does. So that’s something to look into as well.

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