The age-old question is still asked to this day: Is renting or buying a house the more financially sound decision? The answer to this question is not a simple one or the other; there are factors you’ll need to consider to make the choice. The real estate brokers at Coldwell Banker in Wisconsin have shared the pros and cons of each to help you choose.
Renting a House
The two largest benefits of renting are the flexibility and the low up-front costs. The typical expenses are a month’s rent, renter’s insurance, utilities, and a security deposit. Depending on your lease terms, your commitment to the property is short term (often on a monthly or annual basis). As a result, renting is a good choice if you know you will be in the area for only a short time, or you’d like the flexibility to move in the near future.
Buying a House
Buying a house makes more financial sense if you will stay in an area for a few years or more. There are more up-front costs, though, including a deposit, down payment, and closing fees. After that, there are recurring expenses, such as homeowners insurance and the regular mortgage payment. However, buying a property is more affordable than most people think. Contrary to widespread belief, a down payment of just 5% to 20% of the sale price is typical. And the greatest benefit is when you pay your mortgage, you are essentially paying yourself. Buying a house is investing in your own future because you will eventually fully own the home, and that money will be yours when you sell.
If you’re still unsure about the best option, talk with a financial advisor and a real estate agent. They will go over your options with you to help you make the best choice for your future. If the right choice is buying a house, the real estate experts at Coldwell Banker can help you find the perfect home for sale and negotiate a price on your behalf. Give them a call at (715) 424-4800 to schedule a consultation with an agent.