Is Buying a Foreclosed Home Better Than Renting?

You may be juggling dozens of thoughts as you’re looking for a new house to move into. And one thought that is sure to cross your mind is whether to rent a house or buy a house. Something to remember if you’re thinking of renting a house is that the amount of rent you pay every month could be better invested in a house of your own. While you may think that renting a house is far more affordable than purchasing a property, it is not necessarily the case if you’re considering foreclosed homes. When you buy a foreclosed home, you may not get the brand new, perfect house, but you sure will be making a sensible investment. And you can always spend some money down the road on home improvements that could turn your solid investment into the dream house. If you’re still uncertain about purchasing a foreclosure, below are some additional benefits that may help with your decision. 1. Many people assume that a monthly rent is much lower than a mortgage payment, but that’s often not the case. There are many areas in the United States where the monthly rental fees are quite expensive. 2. Even if the monthly rent isn’t as much as the monthly mortgage payment, investing in a foreclosed property can be a better investment, since you will own a house that you can live in long term or resell for a profit down the road. 3. Since foreclosed properties are repossessed or bank-owned, they are usually available at lower-than-market prices. Therefore, you can find REO properties or foreclosed homes at more affordable prices than other homes, making it possible for you to own a home, even if you’re living on a strict budget. 4. Buying a foreclosed property has other benefits too, offering a great opportunity for first-time buyers to enter the real-estate market. As a first-time home buyer, you may be looking for homes that meet your budgetary and functional requirements, and foreclosed homes provide the ideal platform for such an investment. It is certainly a great feeling to be the proud owner of a house. But do not forget that the purchase of a house comes with responsibilities such as paying taxes and maintaining the property. It is true that you don’t have to worry about these responsibilities, if you merely rent a house. But don’t let these concerns deter you from making an investment that can bring you great personal and financial benefits in the long run.