Are you currently renting a home or apartment? If so, you may have questioned a few times as to whether or not buying a home is the cheaper option. While in the long run, buying a house is most likely the least expensive option, this doesn’t mean that renting doesn’t have its perks.
When moving into an apartment you are typically asked to provide a security deposit that matches your monthly rent and your first and possibly last month’s rent. While this can be costly, the price does not measure up to upfront costs when purchasing a home.
Depending on where you live, if you rent you may be looking at about $5,000 on upfront costs. However, when purchasing a home you will be looking at upfront costs that include your down payment, closing costs, inspection fees, and a few other expenses that can definitely add up to more than $5,000.
On the contrary, your monthly costs or mortgage can be more favorable when owning your own home. Keep in mind that when renting, your landlord is typically charging you the cost of the mortgage plus some because they have to make money too. So right away, you are more likely to spend more money monthly on renting a home rather than if you owned it yourself.
Another thing to keep in mind when determining if renting or buying a home is the right choice for you is the cost of utilities. Utility fees can vary, but when renting, it’s not uncommon to see a few, if not all, utilities included in your monthly rental fee.
When it comes to maintaining a property, fees can certainly add up. You may run into a leaking roof that requires repair, a malfunctioning AC unit, and more. The bright side of renting is that when any problems occur, you won’t have to pay for them to be fixed. In contrast, when owning your own home, these expenses will be yours to handle and pay for.
Fees such as property taxes, home insurance, and more are some additional expenses that come into play when purchasing a home. When renting a home or apartment, it is still wise to have renter’s insurance however, it is typically a nominal fee compared to homeowner’s insurance.
If you no longer believe renting is the best option for you, check out this house payment calculator to determine what price range you can afford when searching for a home to purchase.Like What You See? Share the Story!