Yes, the real estate market has been in turmoil for some time now, and with no end in sight, it can be easy to get confused on whether to rent or buy a home. Many Americans feel confused about whether buying a home will put them at risk of financial downfall or if renting means they simply throw their money away each month. Renters all over the country are applying for short term cash loans through MoneyMutual.com, which matches consumers to participating lenders based on the information they provide, to get the cash they need to pay their landlords. In order to avoid late fees on their mortgage, people who own a home are also getting short term loans (or payday loans) from lenders that are part of Money Mutual’s lender network. With renters and homeowners both struggling to get the cash they need now, it’s hard to decipher who is better off in the long run.
The first step in determining whether you want to rent or buy a home is to assess your personal financial goals. Everyone’s goals are unique and there is no way to answer this question in black or white. Then, go over the pros and cons of buying and renting to determine which option is best for you.
The pros of renting include:
- Flexibility to be able to just pick up and go as long as you submit the termination notice within the amount of time outlined in your contract.
- It can be inexpensive at first. Though buying a home usually requires a large down payment, the upfront cost of renting is often just a security deposit and a couple months-worth of rent.
- You don’t need spotless credit. Though many landlords and rental companies ask to see a credit report, they are usually much more lenient with credit scores than mortgage lenders.
- Less responsibility. If a pipe breaks or the roof leaks, it’s usually the landlord’s responsibility to fix it, saving the tenant time and money.
From property taxes to private mortgage and homeowners insurance, owning a home has some benefits and long term costs that vary each year. However, there are some definite perks to owning your own home including:
- You can build equity. This gives you an opportunity to build wealth which is why many invest in real estate.
- You get tax incentives. The government offers tax incentives as a way to make homeownership more affordable and attractive to the average American.
- Homeowners usually enjoy low mortgage rates, especially in today’s economy where interest rates are at an all time low.
- Though rents will increase over time due to inflation, as long as you get a fixed-rate mortgage, the amount you pay each month will not increase for 15 or 30 years (depending on the loan you have).
- The pride that comes from owning your home. It’s your home and you can decorate, paint or landscape just about any way you want.
Whether you decide to rent or own, keep in mind that if you ever have a tough time paying rent or making the mortgage payment, places like MoneyMutual.com are here to help you get in touch with the right lender so you can get the short term loan or ‘payday loan’ you need.
