Are you looking for a place to call home in St. Louis and aren’t sure if you should rent or own? Should you designate time to either look for a place to rent or try to snag a home from a buyer-saturated market? Many people believe that renting a home is throwing away money, but does that apply to St. Louis? How does a St. Louis mortgage compare to monthly rent payments? In this article, we break down the pros and cons of owning a home versus renting, helping you decide what the best decision is for you. Keep reading to learn more.
Renting a Home V.S. Owning a Home In St. Louis
St. Louis is notoriously known for being one of the cheapest places to live in the US. In fact, St. Louis homes have a median selling price of $186,000, with extremely low property taxes. Whether you decide to rent or own, know that the cost of living in St. Louis is among the lowest in the country, as well. However, does this mean it’s better to rent or own?
Pros of Renting a Home
Some people have the belief that you’re throwing away money when you choose to rent. This is usually not the case. Even if your monthly mortgage payment is cheaper than the average cost of rent, there are multiple other factors that can make homeownership more expensive. St. Louis is a special case due to its extremely low median selling price, cost of living, and property taxes. Despite this, there are many pros to renting a home instead of buying one.
Expenses Are Covered By The Landlord
All expenses related to maintenance and repairs are covered by the landlord, who has an appointed handyman readily available. This eliminates the need for you to search for an affordable, trustworthy repair man.
Flexibility To Relocate
Your lease ends and you’re free to relocate where ever you want, whether it is to a different city or a different state. When you purchase a home, you are committing to not only that piece of real estate but its location as well.
Consistent Monthly Payments
Your payment is the same month-to-month. You won’t have to worry about a spike in monthly expenses. All of your fees are clearly outlined and remain predictable each billing cycle.
Bypassing The Trouble of Trying to Purchase a Home
The market is oversaturated with people looking to purchase a home. Whenever a home becomes available, it is snagged up almost immediately. People end up waiting months and bidding more than they anticipated to try and purchase a home.
Cons of Renting a Home
There are cons to renting a home, of course. For example, you don’t have as much freedom to renovate the house. On top of that, the cost of rent can rise when the lease ends. The landlord also bears the right to sell the property at any point, which will either have you looking for a new place to live or dealing with a corporate property management company.
Pros of Owning a Home
Having a home to call all your own is truly a special feeling. Not only that, purchasing a piece of real estate is an investment that can help you build equity. This will allow you to sell your home for more than what you bought it for. You do not have the same opportunity to build wealth if you choose to rent. As we mentioned before, purchasing a piece of real estate in St. Louis is generally cheaper than renting. If you’re looking to build your wealth, owning is the right choice for you. There are only a few counties in St. Louis where this does not apply.
Owning a home also allows homeowners certain tax advantages. For example, you can earn tax reductions on your mortgage interest payments. Whereas, you are not entitled to the same benefits as a renter.
Cons of Owning a Home
As a homeowner, you will experience some of the many struggles involved in owning your own home. You’ll be responsible for paying a wide assortment of fees, such as:
- Monthly mortgage payments
- Private mortgage insurance
- Property taxes
- Homeowner’s insurance
- Homeowner’s association
Because you have a larger amount of fees to pay, it doesn’t necessarily mean they are more expensive than the fees associated with renting. Additionally, the amount of money you invest into your home does not necessarily mean your investment will perform well. How well the investment performs depends on a variety of factors, like the economy, environment, and location, to name a few.
As mentioned earlier, the housing market is extremely saturated with homebuyers looking to live out the American dream. To snag a home, you might find yourself waiting a few months and spending more than you have originally planned.
Should I Rent or Own?
What the decision boils down to is what the best choice is for your particular situation. What meets your goals best? Honestly asking yourself where you see your life going in the next few years and outlining your goals around that trajectory will help you decide whether you should rent or own. Analyzing your budget will help make financially informed decisions surrounding renting or buying a home in St. Louis.
Conclusion – St. Louis: To Rent or Own?
To rent or to own, that is the age-old question! There are many pros, as well as cons, to both renting and owning. Honestly asking yourself what level of commitment you are ready for will help you arrive at a decision. A St. Louis mortgage lender is always available for your questions. Remember, St. Louis boasts some of the lowest prices for both purchasing a home and living. Don’t let that sway you out of renting, though. If you know you won’t stay in St. Louis long, buying a home may prove to be too big of a commitment. There is nothing wrong with renting, despite what some biased homeowners will say. Do what makes the most sense for you and your life.