Buying vs. Renting | DOBI
 

Buying vs. Renting

Which Makes Sense For You?

rent buy

Buying a home is a large investment, one that will be your largest asset and can pay off in the future. In fact, a recent article published by realtor.com shares that building and renting single-family homes is a top-performing investment.

But before jumping in and looking for your dream home, there are factors to consider.

The Growing Cost to Rent

Since the beginning of this year, the national average rent has increased a staggering 16.4%. According to Bankrate, mortgage rates are still some of the lowest they have been in years and currently sit at 3.2% for a 30-Year Fixed Rate. Homeowners are currently gaining equity quickly in today’s market.

Home Maintenance Costs

When you rent, you do not have to worry about home maintenance costs for your home. Renters will pay for their rent plus any utilities and don’t have to worry about property taxes, HOA fees, landscaping, snow removal, and any repairs which are handled by building maintenance. The maintenance costs for a house can add up and year-to-year maintenance on a home can often run from 1% to 3% of the home’s cost.

Financial Impact

Evaluate your current finances and debt-to-income ratio to see what you can afford and if it makes sense to purchase a home right now. The better the interest rate you can get, the less pricey your mortgage payment is going to be- which is great considering mortgage rates are still at an all-time low.

Down Payment 

A common misconception is that you are required to put 20% down on a house. However, there are plenty of different loan options out there- in fact, many first-time homebuyers can put down as little as 3%! Your realtor will be able to help you decide! (Pro-tip: Buyers agents are free!)

Ready to buy? Let us connect you with a DOBI agent that can help you with every step along the way. Head here to get in touch with an agent.

Sources:

https://realestate.usnews.com/real-estate/articles/renting-vs-buying-a-home-which-is-smarter