Is it better to rent or buy a home in Naperville?
This is one of the most common questions that Ron Coluzzi hears as a Naperville real estate agent. Many would expect that the answer from a real estate agent would be “buy a home” because it is in their best interest. But to be completely honest, the real answer is "it depends."
Buying a home is a major investment and one that should be undertaken when you plan to remain in an area for a while. If you are only going to be in Naperville for a short term, usually 18 months or less, it would be in your best interest to rent instead of buy from a financial standpoint. However, if you plan on remaining in Naperville for longer than 18 months, buying a home is a better option.
THE BENEFITS OF BUYING A HOME
In many cases, purchasing a home is more affordable than paying rent. Your monthly mortgage will be considerably lower than rent for the same size home in the area. Landlords must make their own mortgage payments as well as make a profit on their properties, which is why the rental costs will be much higher.
One of the main reasons that you want to purchase your own home instead of renting a property is because your house will be one of your most valuable assets. Owning your home will provide you with an asset that increases in value over time. The value of your home will increase as your payments decrease, leaving you with one of the most valuable assets in your portfolio.
Another reason why owning a home is beneficial is because you build equity in your home. As the value of your home increases, your access to that equity also increases. In the future, if necessary, you can access the equity in your home through refinancing. This can be a very valuable financial tool.
Owning a home and paying on a mortgage also helps improve your credit score.
Lenders and the credit reporting agencies look favorably on credit files that include a mortgage payment that is being paid on time. To achieve a very high credit score, you must have a mortgage as part of your report. When you have a mortgage, you can count on lower interest rates for other types of credit, making all areas of your life more affordable.
Perhaps the best part of buying a home in Naperville has a place to call your own. When you set aside all of the financial benefits of homeownership, there is that personal satisfaction of having your own place. Having your own place gives you somewhere to rest and relax after a long day at work. Your own home can be a place to entertain friends or ren your home business. You can raise a family in your own home or retire in comfort. It is all your own choice when you are a homeowner.
When you are ready to purchase a home in Naperville, it is essential to work with a qualified Naperville real estate agent. Ron Coluzzi is a leading real estate agent in the Naperville area with over 29 years of experience helping people find the right home.