To Rent or Buy in New Hampshire: Which is the Right Move?
When you’re renting an apartment, condo, or house, it makes sense to think about your overall financial situation and decide whether there’s an advantage to buying your own home. It can be difficult to feel like you’re spending money month after month with nothing to show for it when you’re renting, while at the same time, home ownership might seem like an unattainable goal. Generally speaking, even with the recent uptick in mortgage rates, it’s smarter to purchase a home versus renting in southern New Hampshire if you’re planning to stay in one place for at least three years.
In 2022, according to the New Hampshire Housing Finance Authority, the median monthly rent for a two-bedroom unit in Hillsborough and Rockingham counties ranged from about $1,700 to more than $1,800. Those rates are up an average of 27% over five years, and anticipated to continue increasing.
So what are the differences between renting and buying?
Pros of Homeownership
- The benefit of paying a mortgage instead of a landlord is that you are building equity in your own real estate.
- Homeowners can benefit from tax benefits, including being able to use mortgage interest as a deduction. If you work from home, there may be some tax advantages available for you there as well. Speak to a tax professional to learn more about your eligibility.
- Homeowners have the freedom to renovate, paint, replace appliances, and upgrade the home to make it what they want, without answering to a landlord’s rules and restrictions.
- Do you have a pet? Owning your home means you won’t have to worry about a landlord’s restrictions, limitations, or additional fees imposed for pets.
- A fixed interest rate means your mortgage payment will not go up. Refinancing down the road might even lower your monthly payment.
Pros of Renting
- Renting requires lower upfront costs and paperwork.
- Having a landlord means you’re not responsible for maintenance and repairs.
- Renters don’t pay property taxes; however, these costs are likely baked into your overall rent.
- Renting makes moving elsewhere easier.
Choosing to buy a home takes a bit of financial planning. If you decide to dive into the housing market in 2023, start by improving your credit score and researching the best interest rates. Getting pre-approved for a mortgage is important before you even begin to look at homes.
Feeling inspired and ready? Let us know if new construction is on your list of options. We can help make that happen!