Renting an apartment or home can be a great decision, especially when you’re first starting out or move frequently. But when you’ve been renting for a while, you’ve likely thought about whether you might be better off owning your own home. Could 2016 be the year you become a homeowner?
Ultimately, your decision to buy a home or continue renting will be a financial one. Don’t automatically assume you’ll be better off renting. You may find you’re throwing money away every month on rent when you could be building equity in a property of your own. In 2014, for example, a Trulia study found that it was 50 percent cheaper to buy a home in Minneapolis than it was to rent one.
Rent or Buy In Buffalo?
Fortunately, there are several online tools you can use to help you figure out whether you’re better off renting or buying. Realtor®’s calculatordetermines whether you should rent or own based on your city, home price, and monthly rent payment.
Imagine you’re considering purchasing a home in Buffalo, Minnesota. The median home price is $160,000. Assuming you’re paying $1,000 per month in rent, buying a home becomes cheaper than renting after just three years of home ownership.
In fact, how long you plan to stay in your home has the most significant impact on whether it makes more sense to buy or rent. If you’re planning to move after just a year or two, renting might make sense. But if you can commit to staying in your home for 5 to 7 years, buying a home will likely be your best bet.
The decision to buy a home is likely the biggest financial decision you’ll ever make. That’s why it’s so important to have an experienced Realtor® by your side during the home buying process. To get started on your 2016 home search, contact Trent Shipley at Keller Williams Realty Integrity NW today.