Those who have never bought a home have likely heard the suggestion that renting is like throwing money away.
Why rent when you could buy? Well, there are good cases to be made for renting, depending on your circumstances.
Renting a 1 bedroom apartment in Mooresville, NC means never having to worry about being stuck with a mortgage or making expensive repairs; and you can relocate when and where you want without worrying about selling a home.
Owning a home means a yard, painting the walls, building equity (maybe) and hopefully gain an asset that will grow in value. It is a good idea for some to buy a home.
But for those who aren't certain they're going to live in the same place for five years or more, or for those who don’t want the burden of maintenance, buying can turn out to be “throwing money away”.
With a 30-year mortgage, more than two-thirds of the money spent on mortgage payments during the first five years will go toward interest, building little equity.
First-time homebuyers may not be aware of all the costs associated with ownership.
A homebuyer should assume the basic monthly expenses will add around 50% to 75% to the mortgage payment.
There are aslo additional annual costs: utilities, homeowners insurance, property taxes, possible homeowners association fees, termite bond, water/solid waste fees, lawn and yard care.
Add them up, and on a monthly basis those expenses can really make a dent in your wallet.
Plus at least $100 a month to account for repairs and replacing stuff that breaks. The to-do list never goes away.
The Post and Courrier