Rent or buy: do you have money for repairs?

Whether you choose to rent or buy a home, money for repairs may be necessary.

If you buy, however, you'll need money for all the necessary improvements and maintenance.

Whether you choose to rent or buy a home, money for repairs may be necessary. Although it's true when you rent that the majority of repairs are the responsibility of the landlord, you may find some repairs that you'll want to take on yourself. Of course, if you buy a home, all the repairs will be your responsibility. So, before you sign a mortgage or lease, consider how much financial responsibility you're willing to take on to maintain your residence.

Having money for repairs can mean a few hundred dollars socked away, ""just in case,"" or an account dedicated to making repairs on your home. If you own your home, you can never have too much money saved in the event something breaks or wears out. It can give great peace of mind to know that if the bottom of your hot water tank rusts, you can replace it the next day instead of having to do without while you save the money to buy a new one. Although all repairs are the responsibility of the landlord when you rent, taking care of small repairs yourself might be quicker and less stressful. Often, a landlord will reimburse you for the costs because they cannot come fix the issue right away.

Another factor that will determine how much money you might need for repairs is the type of home you decide to purchase. When choosing to rent or buy, money for repairs will be needed in greater amounts if the home is not in top condition. If you buy a fixer-upper, you'll most likely need a decent large of money to make repairs to the home. If you're interested in buying a foreclosed home, you can investigate the needed repairs by getting a home inspection before you buy. If you're buying the home at an auction, you won't be able to get an inspection, so it's best to expect the home will need work and you will need money.

Finally, you should be honest about how handy you actually are when deciding whether to rent or buy. Money for repairs will go further if you can do the work yourself. If you'll need someone else to make the repairs, you'll need more money for needed repairs to pay for labor. If you're leaning toward buying but don't feel you are handy enough, you can take a couple of classes in simple household repairs, so when something small breaks you can fix it yourself.

While you're wrestling with the buy versus rent issue, these are things you should keep in mind. Whether you choose to rent or buy, money for repairs is a factor. Maintaining a home takes work, dedication and money, so you'll need to make the best choice for your current situation. Once you've decided which route is the best for you, look for a home that suits your needs. If you want to look at homes for sale, go to RealtyNow for free real estate listings.