To rent or to buy, that is a question. A topic that has been highly debated over the years is difficult to answer. When you decide to either rent or buy a home, circumstances depend on your current situation from financial, to stability, to your credit, to your own wants and needs. There is no right answer in whether you should rent or buy, but there are some factors that should be considered before you make your decision.
Making this choice will be one of the biggest decisions an adult will ever make in their lives – especially due to the big financial commitment both renting and buying encompasses. However, the costs of buying are more varied and complicated than for renting, which brings us to the question of which is best for you? Let’s dive deeper and lay out some of the details you must consider in order to make your choice.
The price of the home is arguably the biggest and most important factor in making your decision. Pick a budget and look at local listings in your favorite neighborhoods to see what you can get within your range. What do you want to pay monthly? Calculate your mortgage versus your monthly rent to see what fits your budget best.
How long do you plan to stay?
Where do you imagine yourself in 10 years? If you’re looking to settle down and start a family or looking to make some long term roots in your home, then buying is a good option. If you’re looking to change towns or cities often, renting is the better bet.
What does the future hold?
It’s almost impossible to predict, but depending on the direction of the real estate market, your initial investment in a home can pay off in the long run. However, if you’re looking to take less risk, then renting is a safer option.
One of the benefits of owning a home is the tax deductions. Yes, property tax and mortgage-interest add up over the years, however, the bigger your marginal tax rate is, the bigger deduction you’ll receive on your taxes.
When you own a home, unfortunately, you’ll have to pay various fees for closing costs. Also, when owning a home, there are many maintenance fees, sometimes unexpected, that are required to be taken care of. Depending on where you rent, some renters are not required to pay those fees. However, typically renters pay a broker fee and security deposit which tend to have a negligible impact.
If you’d like to discuss your options more in-depth, The Degnan Group at Key Realty is here for your every question. It’s our mission to help find the best home for you and your family. We are constantly updating listings to provide you the most accurate and up-to-date homes available. For the most professional and knowledgeable realtors in the Toledo area, contact The Degnan Group at Key Realty.