CHOOSING BETWEEN HOMEOWNERSHIP AND RENT IN BILOXI
A Home is an essential commodity to everyone. You need a roof on your head as much as you need food to survive and clothing to feel comfortable and look good. For every home, there are two categories of people living there. The permanent residents (homeowner) and the temporary residents, in Biloxi, most of the individuals who fall in the category of temporary residents acquired a space in the house which they stay based on rent. Are you planning to settle down in Biloxi? Then you are likely to be faced with the decision of owning a house or renting one (especially if you are coming in with your family). Of a truth, this is a big decision to make. Both options have advantages and disadvantages.
While many will associate the choice to rent instead of buying due to lack of funds, this is not always the case. A survey of the United States shows that a greater percentage of households are choosing to rent rather than buy. You cannot say poverty rate is the cause of this, as the United States is one of the world’s most stable economies.
Several factors should influence your decision when choosing to rent or owning a house in Biloxi. You do well to answer the following questions honestly.
- Are you able to afford rent or homeownership?
- How long are you going to be staying in Biloxi?
- Are you financially buoyant enough to take care of home maintenance or repairs?
- Do your family, career, and financial goals support house ownership or rent?
An honest answer to those questions will give you a hint as to what option is right for you and your family. In the meantime, some other information could ease your decision-making process.
For most individuals and families that opt for rentals of properties in most parts of the United States, there is a need to meet up with a security deposit requirement. This requirement is put in place to see to it that the landlord is protected against any damage the renter causes and his family or co-occupants cause during their stay in the home.
It is not uncommon to see landlords place the first and last month’s rent down as payments when a lease agreement is being finalized, and the putting of pen to paper is done to seal it up.
If you will be opting for the rent option in Biloxi, one thing you should have at the back of your mind is that your monthly payments for rent might not include utilities like internet, cable, gas, electric, or water. You have to make preparations to get all these expenses sorted after acquiring the rent.
If you are looking to acquire a home in Biloxi instead of the rent option, you are not totally free from financial obligations immediately after the deal is done. You will still have to take care of the monthly payment to service a mortgage. This is reported to be the largest recurring cost associated with homeownership as this payment would cover the interest as well as the principal.
The chances are that the payment might be fluctuating along the line. A rise or fall in the amount to be paid as a monthly payment to a mortgage could vary due to changes made to the property taxes. It could also be a function of the loan having a variable rate.
One challenge that is usually encountered by individuals buying a home for the first time in Biloxi is the possibility of a hike in the price of their monthly payment. It often happens that their monthly payments might be higher than what they previously budgeted. This is usually the result of tabling anything less than 20% of the actual home value as a down payment. This would give the lender enough latitude to place in a requirement needing you to buy private mortgage insurance.
Also, you should beware of purchasing a house in a homeowner’s association. Biloxi is reputed to have high Homeowners’ Association dues. It is probably not the right time to incur such unnecessary costs. This monthly expenditure covers things such as exterior maintenance, community amenities, and landscaping. Taking these expenses out of control of the landlords’ association will give you the freedom to choose which one is truly important to you as a newly settled family in the neighbourhood; thereby saving you some extra cash.
The equity advantage of homeownership offers you.
Buying a home in Biloxi and other parts of the United States is a form of investment. Given the fact that the country has one of the best economies in the world, homeowners are at an advantage. They can take advantage of the equity their house accumulates over some time. In simpler terms, the value of a home rises with time in a thriving economy. The effect of this is that they can get a higher price if they decide to sell for any reason in the future.
How pleasant is the real estate market in Biloxi?
The real estate market in Biloxi is quite friendly. If you want to acquire a home or building in Biloxi at the moment, you can go ahead and check out the large range of properties for prospective buyers to select from. However, it is advised that you employ the services of a realtor, so you get a good property at a reasonable price.
Renting a house in Biloxi or buying one have their respective pros and cons. It is up to you to determine what is best for your family. However, owning a home in Biloxi is a form of investment as you are likely to sell at a higher price if you ever want to dispose of the property in the future.