The potential good deals on a foreclosed property may make you wonder if you should rent or buy a townhome. Read more about the advantages and disadvantages of both.
The potential good deals on a foreclosed property may make you wonder if you should rent or buy a townhome. Since there are advantages and disadvantages of both renting and owning, your decision will be very personal.
Renting a townhome is a great option if you don't intend to stay in the area for very long. If you are renting, you are probably not responsible for HOA fees, which cover the costs of roof repairs, lawn maintenance and pool maintenance. Essentially, you will enjoy all of the amenities of an apartment without the hassle and expenses of upkeep.
However, buying a townhome has its advantages as well. A townhome is often less expensive than a traditional single-family home. Depending on your location, it may be easier to buy townhomes than buy foreclosed homes because there is more competition for single-family homes. Your income may better support the mortgage on a townhome than a single-family home as well.
The decision to rent or buy a townhome may also hinge on the possibility of a good resale. If you buy a foreclosed home, it may be priced lower than market value which will give you instant equity. Of course, you can always turn the property into a rental if you relocate or want a bigger home.
Read more about the rent or buy dilemma in this article.
The decision to rent or buy a townhome may also depend on your credit and financial state. Mortgage rates are low so you could end up paying much less on a mortgage payment than you would for rent, even with HOA fees. But if your credit is poor, your rate will reflect that.
If you want to explore your buying options further, talk to a real estate agent about properties on the market. A local agent can show you foreclosed properties and homes in traditional real estate listings. To connect with a real estate agent near you, go to RealtyNow.