Thursday, 3 March 2022

Renting or Financing a House: Which is the Best Option?

 The cultural issue of the dream of owning a home is so ingrained in United State culture, it ends up making many people not even like to think about renting a property, starting right away for the acquisition. But it is necessary, at this time, to consider the context. The truth is that several types of financing appeared on the market, but also, proportionally, the enormously varied and feared rates.

 So, before making this important decision, it is necessary to put the bills on paper in detail to see if rent can be a good alternative while saving for the future purchase of the property, for example. Want to know some factors that can influence this decision? So check out our article right now:

 Life planning

 The plans of a newly married couple are very different from a young man who has just moved out of his parents' house, isn't it? The couple will possibly want to have children and, therefore, is already thinking about a property that will accommodate this hypothetical life in the future. The young person, on the other hand, may just want to live closer to work, at a lower cost, to make it possible to carry out an exchange program in the next year. Considering these and many other variables, planning in detail what your home will be like in order to make the right decision about purchasing or renting a home is a mandatory initial step for any reality.

 Financial organization

 There are those who can only acquire certain things in life if they have a booklet in hand to pay monthly, instead of having to save money to pay in cash later. And that reality is much more common than you probably think. If you have this profile, it may be better to resort to financing, to ensure that, at the end of 20 or 30 years, you have a real estate. But understand: this definitely does not mean that this option is the most advantageous, but that it is the most appropriate for your financial profile.

 Location and lifestyle

 There are people who insist on living next to work, not valuing comfort so much. Others prefer to live in a bigger, more comfortable house, with a backyard and further away from the big centers, even though they have to face traffic during rush hour. For those who don't care much about the structure of the house, it can be a good deal to rent a property while saving money to buy a more suitable one in the future. For this buyer profile, it is easier to pay a lower rent amount than the financing installments.

 Comparison of values

 This is the most important point, what should really make you decide to rent or buy a property. When you do the math for each option, consider all the variables involved. When choosing to buy, for example, know that it is not just the value of the property that must be taken into account. There are interest on the financing, the broker's percentage — which is usually around 6% of the total value of the property — and taxes and fees, which can reach 5% of the purchase price. It is also necessary to consider the values ​​related to the decoration of the new house, as it will certainly need repairs and various utensils.

 In the case of rent, values ​​such as surety bond must be taken into account, if you do not have a guarantor, whose values ​​can vary from 6.5% to 11% of the rent value, and may even cover not only the rent but also condominium.

 See how much more is involved in this decision than simply the amount of the installment or the rent? At the end of the post, comment here and tell us about the best option for your financial profile: buy or rent? Share your impressions with us!

 Posted by: John Labunski Dallas

No comments:

Post a Comment