If you’re a Millennial—or have a son or daughter who is a Millennial—you’ve probably had a discussion about renting or buying a home. You may think it’s a hard decision when you consider rising home prices, interest rates, and costs of living. But with the with the right help and information, you’ll probably find it’s really not a hard question at all.
Disadvantages of renting:
- Someone else controls all the rules, not you (such as whether you can have a pet).
- You’ll see a steady increase in rent over time.
- Zero tax advantages.
- You have no say if your landlord wants to move into your place or sell to someone else.
The biggest disadvantage: You give away your money. Renting means you never will have the chance to build equity in a home. Instead, you give that opportunity to your landlord.
I repeatedly see people paying more in rent than what they could pay for a mortgage, and usually for less space. It usually comes down to someone thinking they can’t afford a down payment, but that’s a big misconception. There are many loan types and grant programs available than can help buyers whether it is their first home or their fifth. A few even allow for 0% down payments!
When you find yourself asking whether you should rent or buy, you’ve already answered the question. A Realtor can point you in the direction of a trusted lender who will help get you where you need to be and answer all of the questions you have.
Ready to stop wasting money on rent? Let’s Talk!