For its up-and-coming residents, families, and young professionals alike, Frederick Maryland has plenty to offer. Whether you’re new to town or have been renting a place for a while, you may be wondering whether buying a home in Frederick is better than just renting one. Although the answer varies for everyone, there are a few universal factors at play. Here are some things to consider when you’re debating renting vs. buying:
The Realities of Renting
Many renters are attracted to the fact that they're not ultimately responsible for the property. What they commonly fail to consider is that they also sacrifice the advantages that come from home ownership.
When you rent over the long term, you inevitably end up putting more money into your rental than you get out of it. In addition to your actual rent, you may have to pay for material upgrades and repairs that your landlord isn't willing to cover. You might also lose your security deposits and other nonrefundable deposits, such as extra fees for your pets.
Why Homeownership Wins
When you purchase a home, you have to commit to many upfront expenditures, such as broker's fees, earnest money, down payments, property taxes and appraisal costs. The big difference is that by doing so, you're investing in the value of a tangible asset that you'll someday own. As your residence's value appreciates over time, the money that you put down in the early days will generate lasting returns.
Nobody likes making loan payments, but they have definite benefits. Even though these expenses cut into your spending cash, they contribute to your equity, which increases your long-term wealth. Keeping up with your payments also helps you build better credit, which is essential if you plan on making big purchases down the line.
One of the biggest advantages of owning a home is that it gives you a more solid foundation for your dreams. For instance, when you're raising a family, not being bound to the whims of your landlord gives you far more latitude to make decisions about your future.
Improving Your Upward Mobility
When you eventually move out of your home, your ownership status might determine what happens next. If you were renting, then you'll just part ways with little to show for it. As a homeowner, however, you'll get to use the sale proceeds to fund your next great adventure. This can dramatically increase your options and consumer purchasing power.
Make Your Property Purchase More Successful
Buying a home in Frederick is much easier with the help of a reputable lending company. Although there are countless ways to finance your purchase, choosing the right game plan for your specific needs takes diligence, experience, and attention to detail. Talk to one of our experienced lenders at the Deibler Group to discover how we can help you purchase the home of your dreams.