THE PROS AND CONS OF RENTING VS. BUYING A HOME?

Choosing whether to buy or rent a home is not an easy decision. There are many things you must consider before making the choice. On one hand, if you own your home, it is generally more affordable than renting over time and you have the option of fixing any problems yourself (or paying someone else to do it for you).

On the other hand, since houses are expensive investments, the fear of losing money can be difficult to overcome. While there are many factors that go into this decision, here are some pros and cons that might help you decide whether buying or renting makes more sense for your situation.

The Primary Reason

First off, let's talk about why people buy homes in the first place: they believe it will be their primary residence longer than they will live in it. For example, if you are expecting to live in the home for six years before moving again, that should be taken into consideration when deciding whether or not to buy. If you plan on buying a home for your retirement, then that is another high-stakes commitment and should factor into your decision making process.

The Cost of Renting

Living in an apartment means there are virtually no long term commitments, but typically higher costs per month due to having less control over things like utilities and other amenities. The lease period is usually short which makes it easier to move without worrying about penalties. If you rent with roommates, this can save even more money by splitting the bills. However, living with roommates might mean sacrificing privacy or space depending on your living situation.

Also consider that most apartment buildings are not very old. If your building is older, you might still run into problems if the previous tenants did not always take care of things in the best way possible. Many times, when something breaks in an apartment, it needs to be brought up with the management which can seem like a hassle when you just want to be able to fix it yourself or hire someone else to do it for you.

The Cost of Buying

It is important not only to factor in how much you will pay each month but also what type of loan arrangement you have and how long it will last before you own 100% of the home (assuming your down payment was less than 20%). If your payments are for fifteen or thirty years, you will definitely pay more in the long run than if your loan was only for five years.

If you plan to live in your home for several years, it might also make sense to buy a home that requires some repairs so you can fix them yourself instead of paying thousands of dollars to have someone else do it. Even though there are significant upfront costs when buying a house, over time, the repair expenses would be less expensive than having someone else cover all the necessary updates.

The Value of Ownership

Owning your own home is often viewed as something special because you will always have equity in whatever home you buy. Even though there may not seem like much value when paying bills each month, over time it has been proven that buying homes rather than renting them is usually more cost-effective.

Moving Forward

The decision to buy a home or rent one is often a difficult choice. It should take many factors into account, including your current financial standing and how much you plan on spending in the future.

If you think you want to buy a home, let us do the research for you on properties in the area so that when the time comes, you will have an idea of the best decision to make.