Have Questions About Buying Vs. Renting A Home?
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For generations, we have been taught that owning a home is the bedrock of the American Dream. However, just like anything else in life, there are pros and cons. When considering purchasing a home, you should ask yourself the following questions:
At Opportune, Inc., when you start your home planning process, we recommend consulting with a team that has decades of experience in the industry. If you live Chicago, greater Chicagoland, or anywhere in Illinois, you should work with a trusted local lender that can help you make the best decision.
You should be able to make a decision based on answers to the above questions. If your plan includes the desire to remain in a purchased home for longer than a few years, it may make sense to buy rather than continue renting. If, however, you plan on selling that home within 3-4 years of buying, it does not make sense to purchase at this time. Let’s take a look at the following example based on today’s housing trends, to illustrate this point:
Let’s assume you are looking for a 2 bedroom property in a northern Chicago suburb. The building is modern or updated with decent amenities and proximity to shopping, schools, and parks. To rent this type of property, it will cost about $1,500 per month. So, what will it cost to own if your down payment is only 10%, assuming today’s interest rate is 3%? The purchase price of this condo property is $175,000. Now let’s assess the breakdown:
You will pay slightly less per month if you own, and best of all is that there is a chance your property appreciate over time so you will be building equity. Where when you rent, someone else is maintaining a property, but you don’t own the place and your money is paying someone else’s mortgage loan and reaping the benefits of appreciation.
Contact us for additional tips for refinancing your home.
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