Buying Vs Renting A Home In Baton Rouge
Buying vs Renting a Home in Baton Rouge
Advantages of Renting
The following are some of the advantages of renting that the consumer may want to consider:
The initial investment to rent a home in Baton Rouge or apartment is quite low. Buyers often need to have anywhere between 5 to 10 times to move into a home than to rent an apartment.
Renting costs less money. The funds that would normally be used toward a down payment or higher mortgage payments can be invested into savings accounts that give higher returns. This is especially true in situations where the property is lived in by the renter for less than four years.
The renter has a limited responsibility because they do not have to take care of repairs. The landlord is responsible for these tasks. When owning a home, the owner is responsible for all repair costs.
Advantages of Buying
The following are advantages of buying that one should consider:
There are instances in which the cost of ownership can be less than renting.
The buyer has control of the property and realizes that the acquisition of the home is a capital gain.
The buyer experiences tax advantages. Property taxes and interest can be itemized for tax deductions.
Things to Consider When Buying a Home
Despite the various advantages, there are some things that buyers in need to know and be aware of before choosing to purchase a home in Baton Rouge:
The buyer is responsible for more than the mortgage payment. There are also taxes, insurance, maintenance and repairs to be concerned with. There may also be dues from the Homeowner’s Association to consider.
The homeowner has less flexibility to move. After buying a home, there is not much flexibility when choosing a new job in another town.
The market and homes in Baton Rouge prices fluctuate. The appreciation or depreciation of the property value depends on when the home was bought, whether during a boom period or a bust period. The property may not appreciate at the rate the homeowner in Baton Rouge anticipates, leaving the homeowner with no profit when planning to sell it.
Should you Rent or Buy?
There are two factors to consider in this equation: How much the homeowner expects the home to appreciate and how long the homeowner plans to stay. A homebuyer usually needs to stay in the home for at least three years to make up the costs. Staying for five years is the preferable timeframe.
Average monthly rent in : $1,159
Average monthly mortgage in Louisiana: $1,025
*Both the monthly rent and monthly mortgage payment in Baton Rouge have barely budged since 2016. So, when it comes to renting versus buying a home, it’s still more expensive to rent.
Disclosure: May receive compensation from the companies whose products we review. We are independently owned and the opinions expressed here are our own.
After collegiate and professional basketball careers, Jeremy knew he wanted to move on to the next chapter of his life; a chapter that involved his passion of meeting and connecting with new people th....
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