Is it Better to Rent or Buy a Columbus Home?
With mortgage rates coming down slightly and rent prices increasing in many areas including here in Columbus, some renters are wondering if now would be a good time to make that leap into homeownership, or if they should continue renting.
Deciding Between Renting and Buying a Home in Columbus
Financial Aspects to Consider
The first place many of our minds go when considering whether to rent or buy a home in Columbus is how much it will cost and if it is affordable. The purchase of a home requires a significant sum of cash from the homebuyer at the time of purchase. This can include the down payment and the closing costs associated with finalizing a mortgage loan.
The mortgage interest rate you can secure from a lender will also impact the affordability of a home. This is a big determining factor of what a house payment will work out to be. The good news is that interest rates have come down slightly and are expected to hold pretty steady. This is hopeful in making a home more affordable for potential Columbus buyers. In addition to the mortgage payment and other purchasing costs, there are also the property taxes and the maintenance costs.
Homeownership does have extra financial responsibilities as compared to renting but it also has benefits that renting does not offer. The biggest financial benefit is that your home will increase in value and help you to build wealth slowly over time. It is one of the most steady investments you can make in America.
Another financial advantage of owning a home instead of renting is that your payment is your payment for the rest of the time you are in the home unless YOU DECIDE to refinance. There is no one deciding the payment for you. There is no change in rent prices. No sudden increase to your rent once your rental/lease agreement expires. A mortgage remains the same payment for the duration of the loan until it is paid in full.
There is a good reason why there is a very old cliche in real estate; "location! location! location!" It's because where you live matters to the convenience and ease of your daily living. It also contributes to the pleasant feelings, quality of life, and happiness you feel toward your home. If you are ready to commit to a favorite neighborhood in Columbus a home purchase may be a good choice.
If you are someone who likes to try out new locations or plans to move to a new area, it may be best to continue renting for now. Renting allows for more temporary living accommodations and the easy ability to move to a new location. If you are not sure where you want to be on a longer basis or if you just are not someone who prefers to stay put, it is a better choice to rent.
A home is a longer-term investment. It is advised that homebuyers should only purchase if they see themselves living in the home for at least five to seven years. This is because it costs some money to invest in a home and it takes time to build back on your investment. Moving before you have at least earned enough equity to cover your investment in the down payment and closing costs means you are losing money instead of selling your home for a profit.
The Ability to Make It Your Own
With renting a person is limited in what they can do to make a home feel comfortable and customized to their preferences for living. Owning a home allows a person to make whatever changes they want (within local zoning laws and HOA regulations if a home has one). You may be ready to purchase a home that you make all your own. A home that you can customize exactly the way you want it. Any paint color, the appliances you prefer, creating more space, or knocking down a wall. You can do all of that on your terms when you own a home.
When it comes to deciding whether you should rent or buy a home in Columbus is no straightforward black-and-white answer. It depends upon your ability to afford a home, how you prefer to live, where you prefer to live, and what type of home you want to live in.
If you are contemplating the purchase of a home in Columbus I can help. I am here to walk you through your homebuying goals and help you attain the best choice for you in a home purchase. Contact me anytime with any Columbus real estate needs.