RENTING vs. BUYING
Owning a home is a classic American dream. Right now, more Americans own homes than ever before. But is owning a home right for you?
Purchasing a home is a considerable financial investment, and does not guarantee that you will save money in the short or long run. The main considerations when deciding between renting or buying a home include your lifestyle, your ability to secure a mortgage and your financial situation.
As part of a lifestyle, rentals fit some people's time restraints. Renting requires fewer maintenance and upkeep requirements compared to owning a home. Renting can sometimes provide the opportunity to live in trendy, fashionable neighborhoods or in or near resort communities that may not be affordable when purchasing a home. Renting also allows people flexibility when a job or lifestyle dictates a move.
Not everyone can secure a mortgage. Despite the many types of mortgages and federal programs, some people simply do not have the needed credit rating, or they have too much monthly debt to qualify for a mortgage or to obtain the loan necessary to afford the home they want. Other considerations are how much you want to invest in a home and how willing you are to let that affect your lifestyle.
You should also consider what will happen to the entire housing market over time. If the economy is doing well homes tend to appreciate in value but in an economic downturn home values tend to stagnate. When you rent, you have more flexibility in reacting to major trends in the economy. When you own, you gain tax benefits by deducting certain home costs from your personal taxes.
Accessibility is another factor that may determine your decision. Specific to the Winter Park area market, rental inventory is extremely low and often hard find causing rental rates to be substantially higher than in other areas. If you plan to stay for at least a few years, buying may be a better option as rental rates can sometimes be higher than mortgage payments.
Whether it is best to buy or to rent depends on each situation. If you weigh the lifestyle and personal changes and risks you can make an educated choice and make the decision that is best for you.