Question: I'm considering moving. Is it better to rent or buy a home?
Answer: Homeownership is a big responsibility and a big commitment. Whether or not you should buy or rent a home depends on your financial stability and several other factors.
First, are you financially able to buy a home? Is your income and credit good enough to be approved for a mortgage? Check your credit report and see if there are any issues you need to take care of. The better your credit, the better the interest rate you qualify for will be, and that can save you thousands of dollars over the life of the loan. If your credit needs some work, it might be a good idea to consider renting and spend a couple years working to improve your credit rating.
In today's real estate market, before buying a home it's important to consider how long you will remain in the area and the home. Sometimes a quick sell for a job transfer or new opportunity isn't that easy to accomplish. If you're unsure how long you'll be living in the area, it's best to rent an apartment and not incur the costs associated with homeownership.
Buying a home means additional responsibilities.
Almost always there are maintenance requirements with homeownership. If you're not prepared or not interested in cutting the grass, keeping up with landscaping or home repairs and you can't afford to live in a community where those things are taken care of for you, then buying a home might not be the right decision for you.
There are benefits to homeownership as well.
Usually, the value of the home will increase over time, which means if you ever decide to sell, you should be able to get more than you paid for it. However, that's not always the case.
Owning a home also has a tax benefit. Homeowners can claim their mortgage interest on their income taxes, although with today’s low interest rates, this is less valuable than it was in years past.
Finances aside, the decision on whether or not to rent or buy a home typically ends up being a personal one. If you are financially stable, confident in your employment status and location, and ready for the added responsibility of homeownership, then buying a house might be right for you. If you're not planning on staying in the area and not interested in maintaining a home, then renting is probably a better option.
For more information on renting an apartment in Lynchburg, VA, contact Walden Pond Apartments.
Pittsburgh Post Gazette