Buying versus renting is a complicated question for most people. Your decision depends very heavily on your immediate needs and future goals. But there are some things you should ask yourself before making the decision to obtain a FL mortgage:

Why Rent?

  • Do you need flexibility? As a renter, you can’t get “stuck” in an area any longer than your lease extends. And, in fact, you can break the lease or sublet if you absolutely have to move. For example, you may accept a new job you can’t pass up, or you may lose the job you currently hold.
  • Can you handle home maintenance? Typically, as a renter, you’re not responsible for maintenance and upkeep of the property.
  • Do you have bad credit? If your credit is tarnished, renting may be your only option. The good news is that on-time rental payments will help you rebuild your credit.
  • Are your savings limited? Renters typically only have to come up with the first month’s rent, the last month’s rent, and a security deposit. No down payment is required.

Why Buy?

  • Are you ready to settle down? Buying a house is a commitment, and selling and relocating can be time-consuming and potentially expensive. As a general rule of thumb, you should plan to stay in your property for five to seven years. That gives you the best chance to accumulate equity in the home.
  • Do you want to accrue equity? When you rent, you’re putting money in your landlord’s pocket. When you buy, your home actually becomes your property and adds to your personal net worth.
  • Do you want to personalize your home? Renters can only make limited modifications to the property. As an owner, however, you have complete control. You can paint, decorate, re-carpet, add rooms, or do whatever you want (subject to local ordinances).

Consider the Pros and Cons

As you can see, these questions aren’t always easy to answer, and the answers are different for everyone. Cost is always an issue – in some areas it may be cheaper to rent than own, while in others it may be cheaper to buy a home. You can deduct your FL mortgage interest and property taxes if you’re buying your home, which reduces the homeownership expense. However, you’ll be responsible for maintenance and repairs, which increases your costs. You may also need to pay homeowner association fees or other costs. However, with a fixed mortgage, your payments are locked in, and can’t be increased, unlike your rent.

If you’re weighing the pros and cons of buying versus renting, please browse our website, or call 407-733-6425. We’ll review your financial situation and help you review your options and make the decision that’s right for you.