Choosing Between Renting and Buying

First-time home buyers have quite the uphill battle when it comes to buying a home. Millenials seem to want homes, but they have trouble choosing between renting temporarily with the intent to buy later or just buying now. Often, these potential buyers may not even know what kinds of programs they qualify for, and how that might affect elements of the transaction like down payment.

All About Renting

It’s arguable as to whether you can get more renting or owning in a city like Los Angeles or New York. Real estate prices are expensive, but the value of these properties will also rise. Plus, surrounding areas are still highly affordable. In such situations, high-cost apartments and luxury housing aren’t cost effective for those looking long term. Not unless you make a certain amount yearly, and at that level you should look into ownership as a means to investment.

All About Owning

Owning a property is a very different experience from renting because you are the landlord. That can have its upsides, but it also means you handle all repairs and manage the property. You’ll need to pay taxes and home insurance, in addition to mortgage insurance if you cannot make the 20% down payment.

That said, owning presents an incredible opportunity for investment. Historically speaking, home ownership is one of the best vessels for retirement spending of all potential investment opportunities. It can see declines, but owners typically see gains over the lifetime of ownership. Especially if those owners invest in the property and keep it well maintained.

Bio: Kuba Jewgieniew was an independent agent when he began Realty ONE Group, which was voted one of America’s Fastest Growing Companies by Inc. Magazine.