When it comes to deciding whether homeownership is better than renting, time is the chief factor.
Naturally, homeownership is always a great idea if you plan on staying in your home for an extended period. Buying allows you to put equity into the house, sort of like a forced savings account.
Most homes appreciate over five to seven years, so not only are you saving money but you’re also accruing value. When it comes time to sell, you’re going to regain everything you’ve put into the house through payments in addition to what you’ll get from the sale itself.
Now, if you’re only going to be in town for a short while—like a year or so—buying simply doesn’t make the most sense. The cost of the home purchase plus the costs associated with turning around and selling the home outweigh the appreciation.
My rule of thumb: If you’re going to stay in the home for at least three years or more, it’s a good idea to own the home.
If you have any questions about your particular situation, perhaps regarding a specific neighborhood or how homes in a certain area are appreciating, always feel free to reach out to us. Give us a call or shoot us an email, we’d love to help you any way we can.