You’ve landed your dream job or started your passion project business, which means you’re now earning a steady income. All that’s left now is to finally leave the walls of your parents’ St. George, Utah home and establish your own.
This is an exciting decision to make, but it also comes with a loaded question. Should you buy or rent your house? It’s the most important and expensive financial decision of your life. As such, you should take your time in making it.
Here are factors you should consider as a young professional.
Customization and Maintenance
If you want a house that you can completely customize according to your needs and preferences, buying a newly built home is the way to go. You often have to ask permission from your landlord if you want to make major changes to your rental unit.
On the other hand, homeownership also comes with maintenance responsibilities. You have to take care of the lawn and fix possible electrical, plumbing, and structural problems out of your own pocket in the future. If you plan on renting, your landlord will take care of all repair and maintenance duties for you.
Costs vs. Your Budget
When it comes to costs, renting is more affordable upfront. You only need to pay your monthly rent and a security deposit, compared to a home where you have to pay for a down payment and your monthly mortgage.
The average monthly rent in Utah costs about $1,235. As for mortgages, the monthly fees amount to approximately $1,030, according to a recent survey by the U.S. Census Bureau. But you also have to pay for down payment, which costs $14,000 on average.
But the affordability of your home, whether it’s for rent or sale, will depend on your location. Some states offer cheaper homes per square footage.
Your choice should also be based on your lifestyle. If you plan on traveling or changing jobs frequently, then renting is the way to go. You can opt for a long or short-term lease depending on how long you want to stay in the state or town.
If you plan on settling down, however, then it may be more rewarding to buy a home. This is because homeownership is more affordable than renting in the long term. If you maintain your house properly, you can sell it for more than you bought it for in a few years. Plus, the larger space that houses provide is perfect for those who want to start a family.
The choice between buying or renting a home is a crucial decision. Both will have their pros and cons. So you need to think about your preferences, needs, and budget first before signing a sale contract. You don’t want to end up committing to a home in a city you end up disliking or a neighborhood that becomes too expensive to live in.
Whether you end up renting or buying your house, go with options that will meet your needs — today and in the future.