Should You Buy Or Rent Your First Home?
The purchase of a home is a big milestone in many people’s lives. But how should you decide whether to rent or to take the plunge and buy a home?
We want you to make the right decision, so we’ve compiled some points that will help you make a choice you won’t regret.
Buying vs. Renting: Key Differences
It’s not just a matter of ownership when it comes to buying or renting a home.
Taking Advantage Of Home Equity
Equity accrued over time can be used by homebuyers. When you sell the home at a higher price, you’ll profit from the value increase. Plus, a fixed-rate mortgage will save you from rent increases.
Real estate agents agree that interest rates today are low. That means taking out a loan today is extremely affordable. In Syracuse, NY, buying a house can be almost as affordable as renting. Ultimately, it makes more sense to own a home instead of renting if you qualify for one and build equity.
Tax Implications
The ability to deduct mortgage interest is another factor for buyers to consider. Mortgage interest can be deducted from the taxes of those who itemize.
However, not all people are eligible to itemize deductions, and changes to the tax code in 2018 mean that many people are not able to deduct as much of their mortgage interest and property taxes as they used to.
Home Maintenance Costs
Over time, homes require repairs and maintenance, and while you’re renting, your landlord is usually responsible for these costs. For example, if the HVAC system or refrigerator in an apartment malfunctions, the landlord is responsible for repairing it. On the other hand, as a homeowner, you'll be responsible for those repairs and regular seasonal upkeep, which may quickly mount up.
Consider these home upkeep costs while deciding if you can afford to buy a property. To be aware of any red flags, carefully examine the seller’s disclosure and undergo a house inspection.
Buying vs. Renting: Making The Right Decision
Financial circumstances, future plans, and priorities all factor into your decision. Follow these steps if you are thinking about buying or renting a house.
1. Examine Your Financial Situation
Before going any further, consider whether you can afford to buy or rent a home. Only consider buying a property if you have three to six months’ worth of savings in an emergency fund.
Although you may buy a house with a down payment as low as 3% of the buying price in some instances, doing so means incurring additional debt. Unless you have a compelling reason to buy before you have a 20% down payment, it’s typically a good idea to wait until you have more cash to balance the amount you have to borrow.
2. Determine Your Location
Consider the sort of house you want — size, amenities, style, and so on — and then look into how much it costs to rent and buy comparable homes in your region. Real estate agents can assist you in determining what is available in your local home market.
3. Consider How Much You Want To Spend
Buying or renting a home is a significant financial choice, but it is also vital to recognize that it may offer significant psychological advantages. A house isn’t simply something you own; it’s where you live your life.
The most significant benefits of having a home are not financial in nature, which implies that the argument for purchasing a home cannot always be justified by a financial model. If the data doesn’t lead to a clear route forward, it’s fine to make a judgment based on emotion.
The decision to rent or buy a house is ultimately a personal one. It all comes down to deciding what is best for you and your unique scenario.
Get In Touch With Us For Your Agent Needs
You’ve decided that it’s time to say goodbye to your landlord and buy your first house. What’s next?
If you’re a first-time home buyer in Syracuse, NY, choose Procopio Team at Hunt Real Estate. We are committed to providing you with exceptional customer service. Our family-owned and operated business has extensive experience with both real estate and the CNY region, which is why clients stay with us transaction after transaction. Our agents can guide you through the complicated process of buying your first home.
We offer a FREE one-hour first-time home buyer consultation. Contact us today at 315-350-0571.