What is the advantage of applying for an FHA mortgage to buy your home versus renting one out and declining to become a first-time home buyer?
There are many differing opinions on this subject, so it seems like a good idea to simply list some facts about owning and renting a home that could help you choose which is better.
Depending on your financial needs and goals, you may decide that owning is a far better option.
Renting Means Accepting The Landlord’s Interior Decoration Skills Or Lack Of Them
Home owners have the option to paint, wallpaper, remodel, and reconfigure their home at any time. Renters have to get permission first AND put the home back in its’s original paint scheme when the rental period is finally over. Naturally you could make other arrangements with the landlord, but there are no guarantees that your ideas will be acceptable.
Buying A Home Means You Aren’t Required To Sign A New Lease, Risk Higher Rents, Or Be Moved Out Because The Owner Wants To “Go Condo”
Dedicated renters sometimes live in fear that their apartment building will stop being a rental community because the property owner wants to convert them into condo units. In such cases, the renters likely have the option to buy in, but if you choose not to, you’ve basically been given a deadline to find a new home.
Owning A Home Means Being Responsible For Your Own Appliances And Home Features
For some this is a negative. They don’t want to pay to replace the faulty stove, the ailing refrigerator, etc. But for others, the ability to choose the appliances they prefer and not rely on the landlord’s skill or lack of it in choosing the right makes and models.
Buying A Home With An FHA Mortgage Means A Long-Term Commitment
Another situation where this is a pro for some and a con for others. The long-term implications of owning a home include the ability to repair and remodel the home at any time, apply for cash-out refinancing to convert home equity into cash, and the ability to sell or transfer the home as you see fit.
Yes, owning a home means paying property taxes and it may require other fees such as flood insurance or homeowner association fees.
But home owners never worry about having to wait on the landlord to get around to making repairs, increases in rent, pet deposits, and yes, whether or not it’s permissible to smoke in your own home. Even in today’s health-conscious times, that is still a consideration for some who seek a new place to live.