Thursday, September 15, 2016

Should Newlyweds Buy or Rent?

Whether you recently got married or you're preparing to take that walk down the aisle, there are probably a lot of things on your mind. You have a lot of decisions to make, and now you have to make them with someone else. One of those decisions is where you're going to live. In today's blog, your Lake of the Ozarks mortgage lender discusses the topic of homeownership for newlyweds. Is renting or buying right for you?

Renting vs. Buying 


The answer to the question, "Should Newlyweds Buy or Rent?" is not black and white. The answer depends on your specific situations. There are a lot of considerations to take into account when choosing whether buying or renting is the best option for you. Take some time to evaluate your finances, your career aspirations, etc. Below, we will take a look at a few of the pros and cons of renting vs. buying as newlyweds.

Renting 


Several factors could make renting a preferable options for you. Let's take a look at some of the pros to renting a home rather than buying:
  • Lower Up-Front Costs: You've just spent a ton of money on a beautiful wedding, and now you have to think about the amount of money you need to purchase a home. Buying a home means spending several thousand on a downpayment, closing costs, agent's commission, attorney's fees and more, whereas renting typically just requires first and last month's rent. If you're still thinking about how you're going to pay off your wedding/honeymoon, then adding another large debt to the mix might not be the best choice at this point in time. 
  • Less Maintenance & Upkeep: When you rent, your landlord takes care of any maintenance and repair issues that arise. When you own a home, you are now responsible for taking care of everything. When it comes to upkeep, renting could be more favorable. 
  • No Strings Attached: According to the U.S. Census Bureau, after age 18, the typical American can expect to move 9 times. This is where your career aspirations and life goals come into consideration. Where are you in your career? Where is your spouse? Is there a possibility you could move in the near future due to a career advancement or change? Or do you plan to stay in the same area for awhile? If you or your spouse happen to get a new job in a new state, getting out of a lease is much easier than trying to sell a house. 


Buying 


While there are some benefits to renting, as mentioned above, there are also a lot of great reasons to start your new life together in your own home. Let's take a look at some of the pros to buying rather than renting:
  • Build More Wealth: When you buy a home, you are building equity. Homeowners are making an investment, whereas renters pay money each month with nothing to show for it when it comes time to move. Even if you choose to move before you're mortgage is paid off, you still have that equity that you've built up.
  • More Economical: For couples that plan to stay in the same area for several years, buying a house is typically considered the more affordable option. Often times you can purchase a house with a mortgage payment less than what you'd be paying for rent. Ownership is a much better value than renting in just about every U.S. housing market.
  • Great Market: The housing market has made a comeback and now is a great time to purchase a home. The market is relatively stable, home prices have reached realistic levels and mortgage rates are at historic lows. The current market is great for couples thinking about becoming homeowners. 

If you and your new spouse are thinking about buying a home at the Lake of the Ozarks, give me a call at 573-746-7211 today. When it comes to your Lake of the Ozarks home financing needs, I'm committed to working with you every step of the way. We can discuss the pros and cons together to decide if homeownership is the best option for you!

For Lake area news, resources and tips on financial services, please 


Michael Lasson
Sr. Loan Officer
NMLS #: 493712

2265 Bagnell Dam Blvd, Suite B
PO Box 1449
Lake Ozark, MO 65049

Direct:  (573) 746-7211

Email:  mlasson@fsbfinancial.com

**The postings on this site are my own and do not necessarily represent First State Bank of St Charles’s positions, strategies, or opinions.

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