You’re thinking about moving, but you can’t decide whether renting or owning a home in the South Jersey or Philadelphia real estate markets would be better for you.
You aren’t certain which option will provide you with a better return on your investment, are you?
You are unsure as to whether or not you will be able to locate the style of home or apartment that you would like to call your permanent residence, are you?
You are unsure of what you are capable of handling financially, right?
In any case, the purpose of this piece is to provide information that will help you determine whether it would be better for you to rent or buy a house in the South Jersey and Philadelphia area.
How To Know If Renting Or Owning A Home Is Right for You in South Jersey
Homeownership was a primary objective for the majority of American households from the 1950s right up until the 1990s. It was once considered part of the “American Dream” to own a house, and if you did not do so, there was a sense of social embarrassment attached to that fact.
But, that rule has changed in recent years. As a result of the recent economic downturn and the bursting of the housing bubble, many people in the United States are finding that renting is a more appealing option, and this could include you.
When deciding whether to rent or buy a home in [market city], you once had to consider whether you desired to reside in a house or an apartment when making your decision. There are now opportunities to purchase apartments or condominiums as well as rent homes, which means that renters and prospective owners have options to live in whichever type of property best suits their needs and preferences.
Renting is great for people who want flexibility. You might be at the beginning of your professional life and be interested in having the flexibility to move quickly. People who are interested in “shopping around” their city’s various neighborhoods prior to settling down in one location will find that renting is a great option to explore their options.
Owning a home ties you to one location for a good period of time. Defaulting on your mortgage would be disastrous for your credit, and selling your home is a time-consuming and difficult process that could result in you losing a portion of the money you put into it initially.
Contrary to what the majority of people believe, there are many situations in which renting a property is preferable to owning one. This is particularly true in circumstances in which the value of the local housing market does not increase by a significant amount each year. Homeowners are required to pay additional fees, such as homeowners insurance, maintenance, repairs, and HOA (local community association fees), amongst others. Renters, on the other hand, pay a set amount each month for their accommodations.
It’s not always best to rent, however. Homeownership continues to be a central tenet of the American dream. You should not be concerned about losing your security deposit or upsetting your landlord if you decide to paint, decorate, or rearrange the furniture in your house in any way that you see fit. You have this right. When it comes to your home, you will have complete and total independence.
Homeownership as an investment. While the housing market has rebounded here locally in South Jersey New Jersey… the home values aren’t increasing like they were during the build up of the housing bubble (which is a great thing actually)… but another benefit of home ownership is homeowners typically enjoy the potential appreciation of the value of their home.
From 1968-2004, home values grew by approximately 6.4% annually, outpacing inflation (as well as many stocks & other financial instruments).
As a homeowner with a fixed rate mortgage, you enjoy the benefit of inflation protection.
For illustration purposes, if your monthly mortgage payment is $500, you will continue to pay that amount for the entirety of the loan. Nevertheless, the purchasing power of $500 may shift significantly after 15, 20, or 30 years have passed. Mortgage payments at a fixed rate can consume a smaller and smaller portion of a person’s monthly take-home pay over time, given that most people’s incomes increase over time.
When deciding whether to buy or rent your next residence, there are a variety of considerations to take into account. The most important thing is to keep doing what you’re doing right now, which is to educate yourself about the pros and cons of renting versus owning a home.
Whether it’s a mortgage payment of $550 per month for the next 15 years or a rent payment of $600 per month for the next twelve months, the most important thing to keep in mind is to avoid taking on any payments that you cannot reasonably expect to pay for the entirety of the term of the agreement.
Have You Considered Renting To Own A South Jersey Home?
There is another “hybrid” option to just renting or buying a house.
If you would love to own your own house in our area… and…
- Just want to try a house out before you buy it
- You’re not able to get a home loan to purchase a house right now for various financial reasons
- You have some cash to put down on a home and can pay the rent and would rather work toward owning that house
… renting to own a local house may be right for you!
Check out the rent to own process here on this website and if you want to get on our list to see Local South Jersey New Jersey Rent To Own Homes… head over here to see available rent to own homes here in South Jersey.
See our latest rent-to-own homes by going through the link below!