Buying versus renting has been a long standing question for potential homeowners, especially the younger generation. With millennials struggling the most to maintain their finances, between scarcity of work and the astronomical prices of student loans, they are researching all avenues to find the most money-friendly solution for housing. So, is it really cheaper to buy a home than it is to rent?
The short answer is yes, it is indeed much cheaper to buy a home than to rent. According to recent studies, in locations such as Baton Rouge, buying a home can save you as much as 50% in housing costs!
Now, the long answer...it really depends on your individual situation for buying versus renting.
Are you currently unsure of where you want to live in the future, or do you like to travel often?
Then renting may be a better bet for you. With many careers demanding regular travel, or even relocation opportunities, you may be better off renting and sharing a space with a roommate to save on housing costs. Having a roommate when it comes to renting is a huge money saver.
How is your credit?
If you have new or less-than-perfect credit, then you may need to reevaluate your finances before you jump into purchasing a mortgage until you are confident you will get a competitive interest rate. There are options to refinance in the future, if you’d like purchasing a home to help you rebuild your credit with an FHA Loan, however it is wise to weigh your options carefully before jumping into the investment.
Where are you currently living?
While it may be very worth your while to purchase a home in a location like Baton Rouge, studies also showed that if you purchased a home in San Jose, you may only be saving 3.5%...saving is saving but the savings do fluctuate.
Purchasing a home will save you money in the long run and is a great investment for the future, but be sure to stay informed on the current housing market and calculate your future investment wisely. Mortgage Advisor is ready and waiting to help you in this exciting process.