Renting vs Buying in Today’s Market
People are often faced with the conundrum of buying versus renting. Everyone always repeats the old mantra that renting is just throwing your money away. On the surface, this seems like the truth and very wise. Is it really that cut and dry? That is not so certain. Each individual will look at their needs and figure out whether buying or renting is best for them, but it’s important to take a good look at the benefits and downsides of both options.
The problems with renting seem endless. You might have a ruthless landlord or landlady who refuses to fix anything or makes themselves a nuisance. You might be in a bad neighborhood or live at the top of several flights of stairs in a tiny apartment. What if the landlord wants to evict you so he can give your apartment to his kid? Since the place isn’t really yours, all these things are possible.
Or maybe you have an ideal situation with a friendly landlord that doesn’t bother you too much apart from coming by to collect the rent. Your place might be perfectly located in the middle of the city near walkable amenities and your life is pretty easy because of that. After all, you can’t usually get a house in the center of a city.
The upside of renting is that the worst anyone can do is evict you. There are other fish in the sea and other apartments available to rent. The downside is that you don’t own the property so you can’t be certain of it and you can’t make any cosmetic changes to your living space.
This is the ultimate dream for many people, to have a house of their own. Finally, no more landlords to deal with! No more people walking up and down above your head at 3 a.m.! You have your own space to do with as you like, and the privacy that goes along with owning your own property.
The upside of buying is that you were able to pick out the house you wanted, its location and its amenities. The real downside of buying is that foreclosure can ruin lives. Unless you’re able to purchase your home outright, a mortgage will be involved and if for any reason you fall behind in payments it’s possible for the bank to repossess the house. This will stay on your credit report for seven years and make it extremely difficult to find housing. It’s best to work with a realtor who has taken the NJ real estate practice exam when searching for a new home.
Thinking of renting as ‘throwing money away’ does not take into account what may happen to homeowners that do not stay current with their mortgages. Buyers still have more rights and freedom than renters, but they are tied down to the house they chose. Both options are good depending upon your current lifestyle and requirements.