SHOULD I BUY A HOME OR KEEP RENTING?
If you've been renting for a while, you've probably asked yourself:
“Would I be better off buying a house?”
Maybe your rent keeps increasing. Maybe you'd like more space. Maybe you're tired of asking permission to paint a wall or get a dog.
Or maybe buying sounds good, but you're not sure you're ready for everything that comes with it.
The truth is, buying isn't automatically better than renting.
The better question is:
Which one makes more sense for your life right now?
WHEN RENTING CAN MAKE SENSE
There's nothing wrong with renting when it fits your situation.
Renting may make sense if you're unsure where you'll be living in the next few years, expect a job change, want flexibility or simply aren't financially ready for homeownership yet.
It can also make sense if buying would require you to drain nearly everything you've saved just to get through closing.
Sometimes the smartest move isn't buying immediately.
It's spending the next several months getting yourself into a stronger position.
WHEN BUYING STARTS TO MAKE SENSE
Buying may become more attractive when you're planning to stay in the area for a while and want more control over where you live.
Instead of dealing with annual lease renewals or potential rent increases, you're working toward owning an asset.
Homeownership can also give you something renting usually can't:
The ability to make the place yours.
Paint it.
Change the flooring.
Redo the kitchen.
Build the backyard you've been wanting.
You're making decisions about **your home** rather than someone else's property.
BUT DON'T COMPARE RENT DIRECTLY TO A MORTGAGE
This is where people sometimes make a mistake.
If your rent is $1,800 and a mortgage calculator shows a $1,800 payment, that doesn't necessarily mean the two situations cost exactly the same.
Homeowners may also have expenses such as:
* Property taxes
* Homeowners insurance
* Mortgage insurance, if applicable
* HOA fees, if applicable
* Repairs and maintenance
* Utilities and other ownership expenses
When we compare renting and buying, we need to compare the whole picture.
WHAT ABOUT BUILDING EQUITY?
One potential advantage of homeownership is the opportunity to build equity over time.
As you make mortgage payments, part of your payment may reduce the amount you owe on the home.
Your home's value may also increase or decrease depending on the market.
Homeownership isn't a guaranteed investment, and appreciation isn't guaranteed.
But unlike rent, owning a home gives you the opportunity to build an ownership interest in the property.
YOU DON'T NECESSARILY NEED 20% DOWN
This misconception keeps a lot of renters from even exploring their options.
Depending on your qualifications and financing, there may be loan programs that require considerably less than 20% down.
Eligible buyers may also have access to VA financing or certain down-payment assistance programs.
That doesn't mean everyone should rush out and buy with the smallest possible down payment.
It simply means **don't assume you can't buy until you've actually looked at your options.**
ASK YOURSELF THESE QUESTIONS
Before deciding, think about:
How long do I expect to stay in the area?
Is my income reasonably stable?
Would I still have savings after purchasing?
Am I comfortable handling repairs and maintenance?
What monthly housing payment feels comfortable?
Do I want the flexibility of renting or the stability and responsibility of owning?
Those answers tell me much more than whether your current rent feels expensive.
YOU DON'T HAVE TO DECIDE TODAY
Sometimes a conversation with a REALTOR® and lender confirms that you're ready.
Other times, it shows that waiting six months or a year may put you in a much better position.
Either answer is useful.
I'd rather help you develop a realistic plan than convince you to purchase a home before you're comfortable doing it.
SO...SHOULD YOU BUY OR KEEP RENTING?
There's no universal answer.
The question isn't whether buying is better than renting.
It's whether buying is better for you right now.
If you're renting in the St. Louis or St. Charles, or surronding areas, and wondering whether homeownership could make sense, let's look at the numbers and your goals.
No pressure to start touring houses tomorrow.
We can simply figure out where you stand.
Micadez Favors, REALTOR® | MRP
EXIT Elite Realty
Let me do you a Favor.
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