Are you one of those people who have trouble deciding whether to purchase a home or to rent one?
You’re not alone in this dilemma, everyone has to go through this critical and sometimes daunting decision-making process every once in a while, even real estate brokers like myself.
That’s why I created this article to give you inside scoop on the critical things you need to consider before making a final decision. Keep reading!
Building Equity and Net Worth
Homeowners build equity over time. Let’s say you take a mortgage, part of your monthly payment goes toward the loan’s interest and part goes to the principal. Every single dollar you pay back in principal represents one more dollar of equity added to your net worth. In some cases, you can even opt to refinance your mortgage to get lower interest and longer terms.
Freedom & Additional Income Stream
Remember, the home is now yours to do whatever you want – decorate or renovate however you like, once it’s in accordance with local regulations. You can even rent it out to a family(ies) in need of a place to live. You’ll feel accomplished that you can provide such a thing in this world – and not to mention getting paid for it (sometimes handsomely)!
One of the major concerns you have when making any type of investment is certainty. While the future value of your home-to-be may be uncertain, the one thing you can count on is the security of not having to worry about eviction and leases contrary to renters. An owned home is where you and your family feel safe.
Now that you own the home, you have to foot the bill for any maintenance or repairs needed. Typically, you can expect to pay 0.5% of your home’s value annually in maintenance to keep it in tip-top shape. Example, your $2,000,000 home can bring about annual maintenance of about $10,000 ($833 monthly). So budget yourself!
The state of your local real estate market can either positively or negatively affect your home’s appraisal value. If the market goes up, you profit by gaining more equity on your home than you paid for, and vice-versa.Aren’t you curious to know the state of the T&T market and what your home could be valued at? Get a free estimate from our expert agents now! All it takes is 20 seconds.
No matter how much advice you get and from where, the decision to buy or rent is ultimately yours. As you work towards this decision, keep in mind that it is better to wait and make the right call, than to rush in and regret.
Need an extra hand? Contact Tucker Real Estate here or sign up for a free 1-on-1 consultation with your very own personal agent.