If you are thinking about moving to Auburn, then you have made a great choice. Auburn is one of the most beloved places to live in the United States. However, you have probably pondered whether you should buy or rent Auburn real estate. This isn't a decision to be taken lightly. Whether you buy or rent can affect your and your family's finances for many years to come. Auburn real estate is very valuable, and there are definitely pros and cons to both owning and renting. Let's take a look at some of them. |
One thing to keep in mind when you are deciding whether to rent or to buy Auburn real estate are the costs for maintenance the property. There are many maintenance costs that a home typically needs. Over time, the carpets can become worn down and start to look unpleasant. When this happens, it becomes necessary to buy new carpet. Sometimes, your plumbing can give you trouble. A toilet can stop working or a pipe can burst - spewing water all over your yard or home. Bad architecture can begin to show its effects after many years of going undetected. A ceiling can begin to sag, or a wall can completely collapse. When these things happen, are you prepared to fix them? When you rent, these maintenance costs are the responsibility of the landlord, who is the proper owner of the house. On the other hand, when you buy a home, you are the owner and you must take full responsibility for anything that goes wrong with the home. If you don't pay to have the plumbing fixed, then you and your family might find yourselves without running water.
Whether you rent or buy Auburn real estate, you have to keep in mind the cost of insurance. If you decide to buy a home, then you will probably want to get full coverage, which will protect your home in case something disastrous happens to it. This might include something like a fire or a flood where the entire structure is damaged beyond repair. If you have homeowner's insurance, your insurance policy will pay for the value that you have lost. It will also protect you against the loss of the personal items inside your home that might similarly be damaged in a fire or lost to a theft.
If you decide to rent Auburn real estate, on the other hand, you won't have to pay for nearly as much insurance. You'll be able to opt for a simple renter's policy, which merely protects your belongings in the case of a disaster like a fire or a theft. It can also provide you with liability coverage, which can protect you if you have a water bed that breaks and damages the landlord's house, for example. It can also protect you by offering you a temporary place to stay in the event that the house become temporarily unlivable. Usually renter's insurance is optional, but it's almost always cheaper than homeowner's insurance.
This is yet another expense you must keep in mind when thinking about whether to rent or to buy Auburn real estate. Even if you own your own home, you must pay "rent" to the government in the form of property taxes. If you don't pay these taxes, then your home can be seized and you will be thrown out on the street. One of the best parts about being a renter is that you don't have to worry about this extra cost at all. The property tax is the sole responsibility of the landlord.
Whether you decide to buy or rent Auburn real estate may depend largely on how much upfront costs you can afford. When you rent real estate, you are often expected to pay a security deposit and the first and last month's rent. It can vary, but this typically amounts to approximately 3 month's worth of rent. If you buy a home, you are often expected to contribute a down-payment towards the house. Traditionally, this amount has been 10% of the the full purchase price of the home. If you want to buy a $200,000 home, then you might need to pay a down-payment of $20,000. Then, you would owe $180,000 on the home, which you would pay off over a period of time. This amount is also charged interest. Of course, the lending standards for housing have been greatly reduced in recent times, so you might find that you can borrow money to buy a house with a much lower down-payment.
Overall, there is no clear answer to whether you should buy or rent Auburn CA real estate. Your choice will greatly depend on your overall financial position and whether you are willing to accept all the additional costs of home ownership.
George has been interested in America's Real Estate Market since long before he bought any. He treats real estate like he does all his other investments and studies it relentlessly. Some find it weird but George really is passionate about real estate and investing. Deal with it.
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