By far, one of the most common questions asked by people relocating to this city is whether they should buy or rent a home in Atlanta. With home prices and interest rates on the rise, is a home still a good investment? If you are asking this question yourself, let’s explore this topic so you can make an informed decision.
Factors to consider
Every family situation is different, so there’s no one-size-fits-all answer when it comes to renting versus buying. Here are some things to consider when evaluating this question for yourself:
- How long will you be staying? Generally speaking, buying a home makes better sense for most individuals and families who plan to live in Atlanta longer than one year.
- What is your monthly budget? Depending on factors like how much you put as a down payment, interest rates and maintenance costs, your mortgage payment could be cheaper than rent—and even if not, you will usually save more money by owning a home for 3 years versus renting the same home for the same amount of time.
- What is your credit? Even people with low credit scores can buy a home, but if you only qualify for a higher interest rate, the payments may or may not be as cost-effective as rent.
- Are you a first-time home buyer? First-time homebuyers in Atlanta often qualify for lower down payments and other incentives that make buying a home more attractive.
Benefits of buying versus renting
Setting aside issues of whether it’s cheaper or simpler to rent or buy, most financial experts agree that buying a home is usually a better financial investment than renting. Here are a few of the advantages of home ownership:
- Investing in your own future: When you pay rent, you are enriching your landlord (in other words, you’ll never see that money again). When you pay a mortgage, you are building your own equity in your own property, ultimately enriching yourself.
- Appreciation: Most home values appreciate over time, meaning you earn equity simply by owning a home. This certainly has been the case in Atlanta, and looks to remain so for some time to come. When you sell, chances are good you will make a profit.
- You’re in control: When you rent, you can’t make any decisions about improvements, and your landlord can always sell the house out from under you or otherwise ask you to leave at some point. When you buy a house, you are in control of improvements, and as long as you make your mortgage payments, no one can tell you to leave.
Only you can ultimately decide whether renting or buying a home in Atlanta is right for you. But for most people, buying a home simply makes better financial sense. Getting into your own home is probably easier than you think, even if you’ve never bought a home before. To learn more about your options, call Atlanta Fine Homes Sotheby’s International Realty at 404.948.4812.