Renting vs. Buying
July 29, 2014 | Tom Ashworth
Those looking for a Hill Country home often wonder if they should rent or buy. There are quite a few variables to consider when making a decision between buying and renting.
If you think you may be moving within the next few years, renting is probably the better option. Renting allows for more flexibility and requires the landlord to take care of the property. The landlord also is able to tell you what you can and cannot do within his home.
Buying a home is longer-term and requires more financial support but allows you the freedom to live as you please. Buying also allows you to build equity as you pay off the mortgage.
The financial obligations of renting a $200,000 home will cost you roughly $1,300 per month usually with a one-year lease. Some landlords will require a security deposit, a pet deposit, and/or the first and last months rent.
The financial obligations of buying a $200,000 home will be roughly a $20,000 down payment plus roughly a $1,050 monthly payment at an interest rate of 4.25% for thirty years.
You may also consider certain loan programs that require reduced or no down payment. Homeowners are usually able to deduct costs on tax returns as well.
If you are considering renting or buying a Hill Country home, contact Tom Ashworth at (208) 830-7991 for a consultation.