Which Is Better? Home Renting Or Home Buying
One of the most important things that anyone should have is a home. Having a house means
you have to maintain it, you’ll have bills to pay and along with those two, you have to save up
some cash for other expenses. The question is which is better? Renting? Or buying a home?
Making the right decision is very important.
The answer is, buying a home. It has been proven by real estate companies that buying is more
affordable than renting. There are a couple of reasons for this. First, prices of homes are now
beginning to drop compared to the prices before. Second, the mortgage interest rates are no at
very low levels. Lastly, home renting is now becoming more costly than ever, especially if you
are looking for one within a city. But of course, there may be a lot of people who aren’t in the
position to buy. First of all, it can be quit hard to get a mortgage nowadays (especially if your 3
credit scores aren’t good enough) even with very low rate offers. The fact that they can just rent
a home gets the idea of buying a home removed in their mind. Also, with the rent prices on the
rise, it makes it harder for people to save for a down payment which is actually the biggest
hindrance to buying a home.
There are only a few cities where buying a home is more expensive than renting on of it is
Detroit. Housing market within a single area has typical targets. New York or Manhattan can be
an example, wherein renting is much more affordable than buying. However, in suburban areas,
buying a house is the more affordable option and it will help you save more money in the long
Another thing that would make a difference with the price is the size of the house. But another
good thing is that in some markets, renting a large home can be affordable. An example for this
is San Francisco, where a studio and a one bedroom apartment will sell 13 times the rent, while
a three bedroom house will sell for more than 18 times the rent.
If you are planning to buy a home, always consider the fact the prices will rise and make sure
that it will give you a better return on your investment. Investing in the most expensive markets
may give you more in the future and it may be safer because investing in old areas that don’t
grow that fast may not give you the amount you are expecting to get in return.
Real estate professionals have already stated that the markets will soon start recovering and
housing will return to its original role of a safety investment, which gives you another reason to
start buying homes because it will definitely give you back your investments and you might even
get more out of it.
Want to apply for a life insurance? If yes, then don’t forget to have a credit check regularly and
make sure that your credit reports are in good shape else your application may get disapproved.