Buying your first home is without a doubt one of the biggest financial decisions a person will make in their lifetime. Is buying a home right now the best decision for you?
There are many factors to consider when choosing whether to buy or rent; but, ultimately, your final decision should be based on whether you want more flexibility or stability.
If you’re unsure about which move is the right move, here is a list of considerations you should take into account before moving forward:
Pros and Cons of Renting
There are several benefits to renting a home rather than buying one. These include:
- Flexibility to move around if your current location is no longer a good fit
- Landlord covers the cost of maintenance
- Monthly housing expenses you can count on
- Ability to test-drive locations
While these are all factors that you should keep in mind, here are some of the drawbacks to renting:
- You are not building equity in your home
- Limited ability to customize your living space
- Rent may increase
- The landlord may decide to sell the home or choose to stop renting
- Lack of stability or permanence
To make your final decision, you’ll want to weigh these things against the benefits and drawbacks to purchasing a home.
Pros and Cons of Buying a Home
There are several core benefits to purchasing a home, which include:
- Building equity with your monthly payment
- Home values may increase
- Tax benefits
- Ability to customize your living space the way you want
- More stability and permanence
Likewise, there may be drawbacks, which include:
- Closing costs may present an obstacle
- Personal responsibility for maintenance and repairs
- Home values could decrease
- Less flexibility to move around
Whether you should rent or buy depends on how long you plan to live in the same place. Consider the costs as well. In many cases, renting can be less expensive in the short term since there are fewer upfront costs.
Assess your personal goals and current financial situation and be honest about what you can afford right now. When you’re ready to build the custom-designed home of your dreams, contact PG Builders to get your project started!