Renting a new place is a big step, especially buying one. That is why you should consider all the facts and then decide are you going to buy a house or to rent it. Take your time and do not rush. We can help you with deciding should you rent or buy a house by giving you some information. So, take a paper and a pencil and write down these tips.
Where to rent or buy a house?
First of all, choose a place where you want to live, then consider renting or buying. What are your priorities? It is not the same if you have a family or if you are single. Do you want family-friendly amenities or good nightlife? Miami can be a really good place because it has it all. Good education, restaurants, bars, nightclubs, etc. For Miami moving you will need professional assistance for your Miami long distance relocation. Wherever you want to rent or buy a house, your items must be moved safely.
Question to ask before renting or buying a house
Ask yourself these questions and think well before you give answers. Many people want to own a home and it is the American dream. But think twice and calculate your monthly costs when renting and buying.
How much money the bank will lend you?
Before you take any step, go to the bank and see how much money they can land you for a house buying. And it has nothing with how big mortgage you think you can afford and handle every month. Banks will allow you to spend about 30 percent of your income (on mortgage, heating, and taxes) and this is your Gross Debt Service Ratio. But it is not all, there is also your Total Debt Service Ratio. It cannot be more than 40 percent of your income.
Can you afford payments every single month?
Be realistic and have realistic expectations too when you deciding should you rent or buy a house. If you want to buy a house, prove to yourself that you can pay a mortgage each month before you go to the bank. Because the truth is that you will need about 40 percent more money than your mortgage is, with all the extras (utilities, fees, taxes, repairs in your new home, etc). A mortgage is not equal as rent because when you have a house, it is better but it has more obligations and costs.
For how long will you stay in that location?
If you plan to move often then renting may be a better option. So, before you take a big step make a “5-year” plan. Because even if you want to sell your house it will cost you (realtor commission is about 6 or 7%). Home prices may go up or down. You cannot be 100 percent sure. If you will move a lot for any reason, it can be risky for your budget.
For your move, you should hire a really good moving company and Verified Movers can help you with that. They can provide you with information about the moving company you are considering to hire. Checking the moving company is a must wherever you are moving.
Pros of renting a house
Both of these options have both, a good side and bad side. So, here are a good side of renting a house:
- Mobility – If you love to travel and not to be in one place, then renting is an option. The flexibility and mobility are better when you are renting a house. Younger people often want to explore a world, so renting is a better solution for them.
- You will save money on a short-term – Renting offering you more savings but only in the short term. It has a few upfront costs and no selling costs at all. If you have a plan to stay in that house for a maximum of five years, renting is a better financial option.
- Lower monthly costs – Costs that you will have for one month are rent, utilities (sometimes they are calculated in the rent) and insurance for a renter. You will not have to pay property taxes, homeowner’s insurance, association dues and when something goes wrong in your house just call your landlord.
- Some perks – Some apartment complexes have perks. For example, a pool, bikes, etc. You have much fewer obligations and problem when you rent a house. It depends where you will rent your new house and what is your monthly budget. Besides advantages of renting a house, make sure to avoid rental scams. Renting have so many pros but only when you choose a perfect house for you.
Pros of buying a house
And, these are the pros of buying a house:
- Control over your property – You can do with your house whatever you want. From painting your walls however you want, to building the additional room. You can make plans and to renovate a house however you want to.
- More savings – When you calculate everything, on a long-term you will save more money if you buy a home. Rent can increase each year, but your mortgage will be the same.
- Emotional satisfaction and financial stability – This is a major factor when people thinking should they rent or buy a house. When you own a property it gives you a sense of independence, pride, and safety too.
- Taxes advantages – There are some little taxes benefits of buying a house. Calculate how big they are and check how to get those advantages.
When you need to rent or buy a house anywhere in the US, make sure you have checked everything. Ask yourself big questions and be realistic. Both of then, renting and buying has pros and cons, you just have to pick what has more pros than cons for your situation.