To rent or to buy? If you read a lot of personal finance, you hear over and over that buying a home is the only way to grow your wealth. But, before making such a big decision, several factors have to be considered. While cost is typically the clincher, don’t ignore other factors such as the length of time you’ll be staying, your current situation, and your future plans for a career (is relocation a possibility?) and family (getting married soon? planning on having kids?).
When it makes sense to Rent
Renting is generally less costly and means less responsibility because no maintenance is required. If something breaks, just call the landlord or the building manager. Moving from one place to another is easy, especially if you are not yet settled on a permanent job, or if you are planning on starting a family soon. If there is a particular neighborhood where you want to live and you can’t afford the houses there, renting is the next best thing.
On the downside, you are less in control of the cost because monthly rent can be increased at (almost) any time. You don’t get to enjoy tax benefits since rental expense is not deductible from your taxable income. Since you are only renting, you don’t get to build equity. And, if there are changes you want to make like repaint, or buy new or major appliances, you can’t just jump right in; you may need to ask for permission from the building manager or your landlord.
When it makes sense to Buy
Having your own home is an investment. It’s a financial investment because home value generally appreciates over time; an emotional and psychological investment because of the attachments, relationships and connections formed. Housing payments are more stable than rental payments. You will be entitled to tax breaks as property taxes and mortgage interest payments can be included in your itemized deductions.
You can redesign and redecorate your home whenever you want. Although there may be some restrictions when it comes to the exterior, when it comes to your home’s interior, you have absolute freedom to do what you want.
On the other hand, buying a house can be expensive and often requires a major cash outlay. While the value of your house usually will appreciate, it can also depreciate. A house is not a liquid asset so if you happen to be in sudden need of substantial cash or if you have to relocate because of your job, selling your house might not be that easy depending on the market. And, aside from additional expense in the form of property taxes, you also have to deal with maintenance expenses.
Affordable Housing Solutions
If you have your heart set on having your own house but you’re worried about the costs associated, there is an option for you: instead of a traditional stick-built home, buy a manufactured home instead.
A manufactured home is more affordable than traditional homes due to volume production. There are extensive design choices and construction time is much faster because it is not weather-dependent. The quality of materials used is maintained and preserved because construction is done indoors within a safe, secure, temperature-regulated, and strictly monitored environment. A manufactured home is more energy-efficient because of tighter seams used. This means less air escapes for better containment of heat or cold, and consequently, reduced consumption of energy for heating or cooling, depending on the season. Less maintenance is required because of its small size and high quality materials (not to mention that most of the homes sold at Big Sky Homes come with a warranty). Lastly, additional financing option can be obtained through the manufacturer.
Big Sky Homes has a Variety of Affordable Housing Products
Whether you are looking for a modular, a manufactured, or a mobile home, we have what you are looking for. Whether your budget is in the tens of thousands to the hundreds of thousands, we can get you into a home that is right for you.
The average price of a house in Billings is over $200,000. We offer many solutions for well below that amount. You can own your house, have the flexibility the comes with it, and still pay less than you would to rent something similar.
It’s a win, win, all the way around.
Give us a call at 406-256-0240, or come visit us at 750 Parkway Lane off Laurel Road.