Renting Vs. buying a home in Arizona has always been subject to debate. Are you struggling to choose between renting and buying a house in Arizona?
Choosing to buy or to rent requires proper evaluation of the advantages and the disadvantages associated with either of the two. Moreover, there are similarities in terms of things to consider whether renting or choosing to buy a house.
In this post, we look at some important aspects to take into account when choosing to rent or buying a house in Arizona.
- The Cost (Monthly Budget)
The first item to come into your mind when considering your housing future relates to affordability. How much are you comfortable spending?
To determine the available budget, consider your total income. Deduct the monthly spending on food, commuting to work, children’s education, and the emergency fund.
Remember that the debt to income ratio determines whether you qualify to borrow under the Arizona home buying programs.
What remains after you have deducted the daily expenses and the monthly repayments of existing debts is what you can now spend on housing.
When it comes to buying a house in Arizona, the once-off total cost is usually higher compared to the cost when renting a house. For instance, if renting a house, you pay that month’s rent and some security fee depending on the agreements with the landlord.
To purchase a house, different costs are involved. Here is a list of some of the costs to expect when buying a home in Arizona.
- The Down payment: Arizona home buying programs provide different options when it comes to paying down payments on a mortgage.
- Closing costs: the closing costs relating to a lender and the third-party fees that are paid when closing the real estate deals.
- Ongoing homeowner’s expenses: This includes mortgage repayments, property taxes, the homeowner’s insurance, mortgage insurance, resident’s association costs, utilities and the rest.
Renting a home will involve monthly rent only. However, some tenancy agreements require that the tenant incur the cost of property maintenance. Before signing a tenancy agreement, read clearly, to make sure you understand the underlying costs.
2. The Long term financial Position
Owning a home means a better financial position in the future compared to renting a property. Consider that owning a home means you have completed making repayments depending on the Arizona home buying programs. At the end of mortgage repayments, you own the property and can sell it recovering the total amount you have paid out over that period.
On the other end, renting a property means you are repaying another person’s mortgage. Years after repaying the monthly rent, you cannot recover that amount; neither will you gain ownership of the property.
If you want to achieve asset accumulation in the end, it is advisable that you consider buying a home in Arizona. On the other end, if wealth accumulation does not matter, you will opt to rent an apartment in Arizona.
3. The freedom to customize your living space
Owning a home in Arizona gives the property owner the freedom to customize the living space. In that regard, if you wish to add extra living space, you have the freedom to redesign the existing room.
For a rental unit, the tenant is limited when it comes to making any changes to the property. If there are any changes in the design or decorations on the property, there has to be an express authority from the property owner.
Are you hoping to have that freedom when it comes to customizing your living space? Check out the available Arizona home buying programs to apply for a mortgage today.
4. Tax Benefits
Another strong argument in favor of owning a home in Arizona is the associated tax benefits. Tax laws allow those itemizing their taxes to write off the mortgage interest payments. This has resulted in people choosing to apply to the Arizona home buying programs as it opens up the ability to deduct the mortgage interest when making tax returns.
5. Mobility Flexibility
If you are planning to relocate to a different city in the future, renting a home is a better option compared to buying a home in Arizona. Whereas you can resell an owned property, the process of reselling the property takes time, causing inconveniences at the time of relocating.
Therefore, whether to rent a property or buying a house in Arizona is more of a personal choice. Buying a property is an asset accumulation plan, hence better for those looking to accumulate wealth. Are you planning to purchase a home in Arizona? If so, check out the different Arizona home buying programs and apply for a mortgage with us today!