People rent property rather than buying a home for various reasons. They may not be in a financial position to purchaseat this time, they may be in an area for a short period of time, or they may not want to be responsible for maintaining a home.
1. In order to purchase a home you need to have acceptable credit and have a down payment. There are some down payment assistance programs available for people who qualify. These programs are generally aimed at first time homeowners (someone who has not owned a house within the past 3 years) and makes less than a certain dollar amount. If you are able to save and put a larger down payment down then you may qualify for a loan without MI and save a lot of money on mortgage insurance. In addition, it is advised to have a little savings incase you need to repair items in the home.
2. If you are only planning on staying in the home for a short period of time usually less than 3-5 years, it may not be advantageous for you to purchase. Unfortunately, during the first years on a standard 30 year note the borrower only pays a small amount to principle reduction. The rest goes to interest, taxes, insurance and often MI. It cost money to sell the property. Not only in commissions but other closing costs. The property will most likely not appreciate enough in a short amount of time to cover all the costs of selling.
3. Some people do not want the responsiblity of maintaining a home. There are always maintenance items to consider when purchasing a home. The house needs to be properly maintained or it will become dilapidated and most likely lose value. If not properly maintained you could have roof issues, water issues, mold issues, heat or cooling issues and so on. Maintenance is probably the number one con to homeownership.
Now with all that being said, Homeownership is still the American Dream. It is still a great adventure and the wealthiest people in this country own property. I think that it is a great investment. Sometimes values do go down, but over time we have seen appreciation. In addition, you have to live somewhere so it might as well be in something that you own. I do think that there is a time and place for everything. Sometimes it makes sense to rent for a season until you are ready to buy.
When you are ready to buy, I will be happy to help you. I want my buyers to be successful and happy. If you want more information regarding real estate, please call me at 405-213-2992 or visit my website at www.sandiwalker.com.