Most people have been told throughout their lives that it’s much better to buy a home than it is to rent. The reason behind this is the equity that a person gets when he or she buys a home. When you rent, you don’t get any equity or any ownership in a house – you just get to live there and you often can’t make specific changes. There are rules and restrictions that you have to abide by, but you have someone to fix problems and address other issues when they come up. Later, when you move, you don’t get anything for your time there.
However, even though renting doesn’t always sound like such a good deal it can be a very good choice right now. That’s because the rental prices in some areas are far less than they used to be. This depends on where you live, of course, or where you’re moving to. Take the time to check out all of the options you have available, so you don’t make a mistake. In some places, housing prices are so low that the payments on many of them come in at 10% or more below the rental prices. In many other places, that’s not at all the case.
Depending on where you choose to move to, you may find that you can rent much more cheaply than you can buy, especially when you factor in things like property taxes, property insurance, and maintenance. A lot of people forget about those kinds of factors when they choose to buy, and then they get into trouble because their budget doesn’t allow for those extra expenses. Taxes and insurance aren’t always factored into the payment, and when they’re not they cause a lot of trouble for homeowners. The maintenance is never factored in, and should have a separate budget. When renting, that’s not a need or worry.