Deciding whether to buy or rent a home is a major decision that affects your finances, family, and quality of life. That’s why it’s very important to weigh in on the advantages and disadvantages of renting versus buying, especially if you’re looking to buy a house in New Jersey.
Choosing to rent or buy a home may seem daunting, but the following may help you with your decision-making process:
Cost
Cost is undoubtedly the most important factor to consider if you’re buying or renting a home. Renting has lower upfront costs. Typically, all you need is a security deposit and the first month of rent and you’re good to go. When you buy a home, you’ll need to have saved at least 20% of the property’s asking price to serve as your down payment – and that’s just for starters.
Location
Whether you’re buying or renting a home, location matters. According to SmartAsset.com, renting is cheaper than buying a house in counties like Hudson or Essex, New Jersey. The site also says it’s better to purchase a home in Camden and Cumberland counties since the average monthly mortgage payments in these areas are lower than the average rent prices.
Length of stay
Renting is convenient because you can move out without incurring penalties after your lease ends. This allows you flexibility, especially if your job requires you to relocate every so often. The downside is that if your landlord decides to sell or convert the property, you’ll have no choice but to move out and find a new place to live.
On the other hand, buying a home is a tangible, long-term investment. It also gives you a sense of stability, pride of ownership, and helps you become part of a community.
Renovation and personalization
While renting allows you mobility, you cannot customize and personalize your rented space as you please. Before you can do any work on the house or unit you’re renting, you’ll have to secure the permission of the homeowner, and this can be a tedious process. On the other hand, buying a home gives you the absolute freedom to renovate, decorate, and modify your space to your liking.
Real estate market
Right now, the NJ real estate market is booming. Prices of homes in major cities and towns have gone up, particularly in Newark. In fact, the New York Post calls Newark “The New Brooklyn.” Because of this upward trend in home prices, it may be better to buy a house now than to wait for prices to balloon even more in the coming years.
In general, it’s difficult to navigate the real estate market on your own. That’s why if you’re looking to buy a house in New Jersey, you need professional real estate agents to guide you through the process of finding the property that’s right for you.
If you’re looking for a new home in New Jersey, specifically in the Bridgewater, Somerset, Morris, and Union counties, our team of real estate specialists here at Pagnotta Homes is more than happy to help you find the right one. Contact us at 908.436.7947 or email info(at)pagnottahomes(dotted)com to get started.