Out of the basic needs of food, clothes, shelter and safety, the need for shelter comes first in our mind. When you know you are relocating in your job, your first two needs are already satisfied. Next two will need affirmation when you decide on a house. The most confusing question for anyone in world over, whether the person is relocating permanently to a new city or already living on rent is to choose from homes for sale or homes for rent. The main factor on which it depends is the period of time for your stay in that city. If you are going to temporarily live there then going on rent is a wise decision. Planning to stay for a long time period at one place, you need to compare whether giving a 20-25% down payment or paying that security amount with the yearly 5-10% increase on the rent, is feasible for you. Considering the fluctuating real estate market in different states also matters. It impacts the prices. If the prices are rising then buying should not take very long time. However, some markets have not yet come down to the pre-recession prices, therefore, you need to wait for the stabilization. Two-thirds of the U.S. realty market falls under this category. On top of it, a mortgage cannot give you the freedom which a lease agreement can, like aligning your current expenses with your income. Doing the proper homework of this detailed market and personal study becomes more important as nobody is willing to be in debts.
Starting with the comparison of the costs involved in both renting and buying is the best idea to start with. It should include the house taxes levied on you when residing on lease or rent in contrast to the tax deductions given when you take a mortgage. There are hidden costs which can empty your pockets after you have taken the decision landing you nowhere. The one benefit you get while on rent is that you are saved from the maintenance cost of the house. On average house owners pay approximately $170 dollars per month in the small maintenances. Roof and HVAC (heating, ventilation and air conditioning) involve huge maintenance costs. So you don’t have to count these as your expenses while on rent. Keeping all this in mind, still there is most significant thing which is to be counted on is your savings. Your savings should be deciding factor to understand whether you ready for the mortgage and house maintenance other than you routine expenses. As these will be add on cost on your pocket.
There are two types of trends seen in America in residential real estate. The young population first goes on rent to start their work and career. Over the years when they have savings and are ready for settling down with their family then they buy a house. On the other hand, the old aged population owning a house sells it to decrease their expenses and start living on rent. As inferred by generations it is not necessary this condition is applicable to everyone. This depends on lot of other factors around you and in your own life as mentioned earlier. Staying on rent is also not an easy affair. Apart from rent there are insurance and utility charges which will add on to the total amount you are spending. The insurance amount taken by the lessee depends not on him but depends on the property which is to be insured. We can conclude here if you are sure about your finances and calculation then buying a home is a better option. It gives a sense of belongingness to that city and you feel connected to the local people. It surely gives you the ownership along with the option of starting your own rental income than staying on rent. Freedom for renovating the home in your own way and elevated social status are few to add to your glory.
I'm a writer and illustrator. I did graduation in Journalism. For my Postgraduate thesis, I researched on Communicative Science and Disorder.