Can there be anything good about RENTING instead of BUYING?
Consider a 3 bedroom / 2 bath 1,100 sq. ft. home. The owner will sell it to you for $149,000 or rent it for $1,100 … your choice.
Let’s say you are going to be living in the area for 3-4 years before you get transferred. What should you do?
| Renting | Buying |
| MOVING IN | |
| Fill out rental application – run credit Pay $25 application fee Get an answer in 1-3 days Pay $1,100 refundable deposit Pay $1,100 monthly rent Owner pays taxes & insurance | Apply for a loan – run credit Pay $400 appraisal fee Wait 3-6 weeks for a preliminary loan approval Pay $7,000 FHA down payment + closing costs Pay $1,100 monthly payment You pay taxes, insurance |
| WHILE YOU LIVE THERE | |
| Call property manager for repairs Hope the Mariners do better next year | You take care of all repairs Hope your home goes up in value |
| MOVING OUT | |
| Give notice 20 days before you want to move Clean your unit Get your deposit back Go & relax! | Prepare & repair home for sale – interview Realtors Keep home clean and show to interested buyers Hope to just get enough to pay off your loan Wait & worry – it may take 30-90 days to get a sale |
Home ownership does have its advantages … you can paint your rooms any colors you like, remodel the kitchen or redo the backyard landscaping as you wish. You are FREE TO WORK on your home!
With a rental it’s different. The owner won’t let you do those things when you rent a home … but when you rent, you are FREE TO LIVE in your home!
Now don’t get me wrong. For some folks, working on their home is their life, and they enjoy it. But for others, living their life is what they enjoy.
For some people, renting can be THE LIFE OF FREEDOM.
