Is there a right choice when it comes to the decision of mortgage vs. rent? Financial decisions are important to care for the financial needs of your family. Not only do you need to think about your current income and cash flow, but it is also important to look at the long-term outlook for your investment.
This rent vs. buy decision has many moving parts; you’ll find a variety of factors that will influence your decision. These are some of the pieces of information that should be considered when you are deciding to invest in a mortgage vs. rent:
- Location or neighborhood where you want to live
- Price of the home you would like to buy
- Cost of the down payment
- Mortgage terms and interest rates
- The length of time you’ll be living there
- Comparable cost of renting a similar property
Mortgage vs. Rent: Pros and Cons
The most obvious benefit of buying instead of renting is that the money you pay each month will go to build equity in your property. If you pay the mortgage long enough, eventually you will have a property that you own 100%, and you will be able to live there without paying a monthly cost. Most mortgages have 30-year terms, which means that you will be able to enjoy the home during your retirement years without the financial pressure of paying a mortgage.
On the other hand, renting is basically throwing money away each month. Yes, you have a place to live that solves your immediate needs. But, the money doesn’t go towards an investment that will benefit your family in the future. As a result, most people view renting as a short-term solution.
Here are a few other benefits of buying instead of renting:
- Long-term stability by living in the same place
- Options for renovations and redecorating
- Set payment since the mortgage is predictable and not subject to landlord changes
- Pride of owning a property you can call your own
- Building home equity over the years
Keep in mind that homeownership means that you will need to keep up with maintenance and repairs over time. On the other hand, the landlord is responsible for maintenance costs and efforts when the property is rented.
What are Your Family Financial Goals?
The best thing that you can do is consider your long-term financial goals and how you want to support your family. If you are looking for financial freedom in the future, then homeownership can be an essential part of your plan.
Don’t overlook the importance of hiring a good real estate team to help you find the right property that matches the needs of your family. For more information, talk to us at DUFFY Realty. We are the leading real estate team in Atlanta, and we’d love to help your family buy a home: (678) 318-1700