Renting and buying both have their pros and cons, but deciding which one is right for you is a major life decision that should be carefully considered. Most people believe that buying a house is the best financial decision, but this is not always the case. It all comes down to your financial and lifestyle situations, such as your career goals, location, and future plans in general. If you’re debating whether to rent or buy in the near future, then this article is for you. See the pros and cons of rent and buying below to help you make the right decision.
Renting offers more freedom and flexibility than buying a house since you can move around without restrictions whenever you finish a lease. Another pro of renting is that someone handles all of the maintenance and repairs so you don’t have to deal with the headache of finding and paying for costly repairs. If you aren’t sure you will live in one place long term, then renting may be the best option for you.
On the other hand, there is a chance that your landlord decides to sell the property, which means you may have to move abruptly. Also if you own pets, you constantly have to pay pet deposits and pet rent each time you move into a new home or apartment. Another downside is that the apartment’s management or landlord may decide to suddenly upcharge your rent due to economic reasons. They may also dramatically increase your rent each time your lease is up.
One of the greatest advantages to owning is locking in a monthly payment that will never change. For example, if you buy a house and live there for 10 years, your payments will be based on the real estate prices a decade ago. If you are renting, your rent will rise with inflation and ultimately it will cost you much more on a monthly basis. Also, with owning, you are building equity and getting some tax benefits, as well as you eventually may own your home free-and-clear.
Homeownership has its benefits but it’s not for everyone. It is a big financial commitment that requires careful planning for your future. Nomadic types who don’t like to stay in one place for long periods of time should not choose owning over renting as it can get expensive to sell and buy when you haven’t built up sufficient equity. However, if you’re ready to settle in one place for a while, then you will enjoy the many benefits that come with homeownership. A feeling of stability, being a part of a community, and pride of homeownership are just a few of the benefits.
Owning a home may help you increase your personal wealth if you build equity, meaning the market value of your home minus what you owe on the mortgage. However, keep in mind that values can fluctuate over time so this is not always the case. Another benefit of owning a home is having the ability to customize and do renovations whenever you feel like changing the look and feel of your home. The downside is that you are also responsible for maintenance such as pest control and landscaping, but also large expenses like the roof and airconditioningThere are also additional costs of owning a home such as property taxes, homeowner insurance, mortgage interest and possibly HOA, but some of these provide tax benefits as well. At first, the overall cost of homeownership tends to be higher than renting, but as values increase, you will probably find yourself with monthly expenses that are less than a renter.
In conclusion, the rent vs. own decision is a personal one and is different for everyone. Just keep in mind that renting doesn’t always mean you’re throwing money away, just as buying a home isn’t always a great investment. It all comes down to your priorities, finances, and future plans. If you feel like homeownership is for you and will be in the market for a real estate agent, reach out to one of our experienced agents today.