As many young adults are beginning to plan for the future, they begin to ponder the idea of buying a home. If they aren't thinking about it now, they will be bombarded with the question sooner or later by all the other "grown ups" in their life. It seems like the next obvious step. And just to get it out of the way, I am a huge advocate for purchasing a home. I seriously think there is no better investment. But I also believe there is a place for rentals. So let's dive in, shall we?
Advantages to Buying
Building equity and credit
Home value increase in the right area
No landlord
Stability
Tax benefits
Modify the home to your liking, and even increase the value of the home with sweat equity
Disadvantages to Buying
Requires more upfront money
Could lose money if home values decline (history though has taught us to wait out the market, if possible)
Responsible for home repairs
Advantages to Renting
Fewer upfront costs (typically first and last months rent and any deposits)
Freedom to be more mobile if you don't plan on sticking around
Typically, not responsible for maintenance or repairs
Don't need to fret over the market
Can work on building credit
Disadvantages to Renting
Landlord gets all the equity, you aren't going to see any of those rent payments back
Landlord can raise rent
May have to move multiple times
Cannot make many modifications to the home
No tax benefits
At the end of the day, I cannot tell you what is right. I have had clients that I actually encouraged to not purchase right now because they needed to focus on improving credit to get a good loan that didn't put them at risk of possibly getting foreclosed on. Owning, I feel, is right for almost anybody AT SOME POINT IN THEIR LIFE. Is that time now? That's all up to you. If you are unsure, talk to a lender! They can help you find the right loan or help you to decide if the time is now. If you need some contacts, give me a call or text (281-435-1068)! I can refer you to some great people.