After finishing college, you stayed at home for a couple more years. This gave you an opportunity to start saving up a sizeable amount of cash. But lately, you have started thinking that it might be nice to get a place of your own. Living with Mom and Dad was great while it lasted; however, having your own home would provide you with more privacy and freedom. While looking around through Houston rentals, you begin to wonder if it would not simply be better to buy your own home instead.
You did save up enough money for a sizeable down payment. But is a fifteen to thirty-year mortgage really something you are ready to commit to paying off? Whether you should rent or buy is an age-old dilemma for a lot of young adults looking to strike out on their own for the first time. It is a fork in the road that is riddled with uncertainty, no matter which way you choose to go; yet, it is a question you will need to answer for yourself soon. One reason is because you are not the only one looking for more privacy and freedom. Your parents would like to enjoy these things too, and your dad has hinted at wanting to turn your old room into an office.
Should You Buy
Buying your first home is a huge responsibility. Once you sign on the dotted line, you are on the hook with a mortgage for many years to come. In addition, the down payment necessary for purchasing a home, though it is within reach, will undoubtedly take a sizeable chunk out of your savings. The decision to own, rather than rent, is in many ways more permanent. On the upside, when you purchase a home, the place will truly be your own. The only entity you have to answer to for the next fifteen to thirty-years is the bank. All the bank wants is for you to pay your mortgage on time and keep insurance on the home. The bank does not care if you throw wild parties, have six dogs that you do not pick up after and leave your front porch cluttered. However, if at any time you stop paying your mortgage, this could lead to your home being put through the foreclosure process. According to an article at NYTimes.com, foreclosure rates are actually increasing in the over-50 crowd. For younger prospective home-buyers, this puts them into a more stable demographic for being a homeowner, but it still begs the question if renting would not be a better choice?
Should You Rent
Although owning your own place and building equity in a home sounds like a great idea, renting often brings fewer problems and responsibilities. Generally, most apartment complexes, for example, will mow the lawn for you and keep the bushes trimmed. In addition, you often have access to the community pool and workout room. Another great reason to rent, which you may not have considered, is that many places may include water, electric, trash pickup, cable, and internet in the cost of the rent at a discounted rate. If things are not to your liking, you can also move out more easily than out of a home with a mortgage. For a lot of younger adults, this makes renting, at least for a time, appear to be the better option.