Choosing Between Renting and Homeownership
To rent or to buy? That is the question. Before making a decision that can affect someone’s financial stability, both possibilities should be carefully contemplated. For those debating the feasibility of one over the other, it is recommended to consult with a knowledgable South Florida real estate professional and make the following considerations.
For many, the shift to homeownership is one of the most significant financial investments they will make in their lives. The financial commitments associated with owning a home should not be underestimated. A common mistake is to compare a month’s rent to a month’s mortgage payment. Monthly mortgage payments may make up a considerable portion of homeownership costs, but there are other expenses to take into account such as principal interest, property taxes, home insurance, homeowners association fees, and maintenance fees. During the buying process, prospective homeowners must be able to afford the down payment, preferably 20 percent of the price of the home. In order to choose homeownership, one’s financial situation must accommodate these added costs in the long-term.
A Question of Lifestyle
When deciding between renting and buying, one must consider lifestyle aspects such as career path and family goals. For those at the beginning of their careers, the mobility allowed by renting may be essential for career advancement. For those deciding to get married and start a family, the relative stability and feeling of being grounded that comes with owning a home may be desirable. In general, age is a major deciding factor in deciding whether continuing to rent or make the switch to homeownership. Statistics show that less than 40 percent of those under 35 own a home, while more than 60 percent over 35 and more than 80 percent over 65 own homes. While statistics support certain theories, purchasing a home is a very personal decision that requires a lot of contemplation and research.
To rent or to buy? If you find yourself at a crossroads, an experienced South Florida real estate professional can guide you toward the decision that best suits you. Whether you are looking for rentals or ready to buy your new home, call your real estate family at Stein Posner today.