Renting Vs. Buying Pros and Cons
Updated: Sep 9, 2021
If you are looking to move you have probably heard that mortgage rates are at an all-time low in 2021. You've probably also heard that rentals are harder to come by and aren't sure what your next move should be. I'm here to break it down for you. I hope this helps you make your decision.
Which is cheaper?
That will depend on many factors. The location and rates will, of course, be a factor. Homeowners get annual tax deductions. An Atlanta apartment starts currently at about $1300 for a studio, and rental rates are continually increasing year-over-year. While you can find a small house to buy in the more rural areas for as low as $1000/month and your mortgage payment will be consistent every month for the term of your loan. Rental deposits tend to be equivalent to 1-2 months rent, whereas you may need about 3-4% of the home's value to cover upfront cost of buying a house. But depending on your financing, you may be able to move in with 0% down! For more information about the upfront costs of buying a house click here. Another option you have as a homeowner is to rent out a room to earn a little extra cash. This is not an option with most rentals since they will not allow their tenants rent out space.
Long-Term or Short Term
If you are moving from place to place for your job or are simply not yet settled in the place you want to live, buying and selling every two to three years may not be for you. Homeownership is best for individuals and families that have settled where they want to be for at least the next five years. this gives you time to build some equity and get a decent return on your investment. Rentals on the other hand have $0 return since you are paying rent and none of that money will ever come back to you.
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