Many factors come into this decision. Money, credit, lifestyle and more. So in some cases renting is in fact the better option for some while owning a home is the best option for others. Lets break down the most commonly mentioned pros and cons of renting vs. home ownership.
If something breaks, the apartment complex will fix it.
Well, that is true…in most cases. If you were the one to cause the initial damage, some property management companies will place the charges on you. While it is nice to have onsite maintenance it’s also great skill building to learn how to fix issues yourself and lets not forget, handymen/women exist…just a phone call away!
It’s easier to get an apartment than a house.
Ok, kind of true. Depending on the companies requirements you may be subject to a credit check, background check, employment history and rental history. (*Pssttt…guess what….those are the same checks you will go through for a home loan as well, just sayin!) Also based on the availability you may not be able to find what you need in time. Some apartments have to be pre-leased before the current tenant even leaves. At times you are looking at either 30/60 days out until you can get the one you desired. (*psstt, me again…did you know that’s typically how long it takes to close on a home…well it is)
When you rent you get a monthly statement which is nice.
Your lender will send you one too! Mortgage statements get posted and sent just like your rent letter. Know whats awesome about your mortgage payment? It’s going to be the same price every month (*unless you’re late or have refinanced). Rent goes up depending on the market around you. Also when your lease is up the management company can charge you a renewal fee just for renewing your lease with them! In some cases, they can also deny your renewal and can give you a 3o or 60 day notice to vacate the property.
Well I don’t have to pay a down payment when I rent.
WRONG! In this case it’s just called a *Security Deposit*. That is based on several factors such as your rental history, your employment, your credit, your dept to income ratio and more. It can be as high as a full months rent, and then you’ll also have to pay that first month upfront! So lets just say you’re getting a 2 bed x 2 bath in Fort Mill, average cost for that is about $1,250. So you could be paying around $2,500 to get into your apartment. Not to mention some properties will also charge you additional money for: amenity fees, 1st floor apartments, upgraded apartments and more. That is almost enough for a down payment on a home!! (*check with your lender first, they’ll know best what you’ll need to have). While you may get your deposit back when you move, you also may NOT. That apartment best look like exactly how you moved into it when you leave or you could incur costs that will come from that deposit.
All in all, you know what you need.
Renting is great if you’re:
- building your credit
- enjoy the flexibility of moving around with less commitment
- looking for a short term option
but home ownership is best because:
- you’ll feel a sense of ownership and pride
- you can recoup money if your home appreciates while you live there
- predictable costs based off your fixed rate mortgage
- you can still move around easily and even rent your property, therefore making money on it while you’re not even there!
- Freedom to party, decorate and build on as much as you want!
Honestly there’s not a better time to consider buying a home. Interest rates are low, properties are ready to be purchased and we’re ready to help you.
It all begins with a simple conversation to see where you are at and if you’re ready to make this move. Our agents will hear you out, see what the next step is and set you up with a lender to see if it’s financially the right move for you. It’s harmless. It’ll take 10 minutes of your day. You could be ready and not even know (honestly I thought I needed a lot more time to save and build my credit but I was able to get my house!)
Call us, lets see where you’re at.