Renting vs. buying…what is the right choice? This question typically comes up at one point in time in everyone’s life. To be honest there is really no correct answer. It is important to look at your finances, where you are in your life…do you have a stable job, are you in a town/city that you can see yourself settling down in. The most important thing is for you to weigh the pros and cons to both renting and buying. From there you can decide what the correct choice is for you!
Renting
Renting a home gives you a sense of freedom. Typical rental leases are for a year long giving you the option to re-lease the property at the end of the lease term OR moving on to a new rental property. Perhaps your job requires a vast amount of travel and it makes sense to lease a home OR you prefer to not deal with all the maintenance aspects of owning your own home. Whichever the case may be we’ve listed some pros and cons below that are helpful when deciding to rent or buy!
Pros
- Freedom to move around and not be tied down to one specific location
- Fewer costs and responsibilities
- Ability to figure out what home best suites you and your needs (examples: condo, townhome, single-family home)
Cons
- You’re paying someone else’s mortgage
- Limited ability to customize the home and make it your very own
- Rent increases
Buying
Buying a home is not only a big step financially, but also a huge responsibility. It is important to ask yourself if you are ready to take on ALL that comes with buying your very own home!
Pros
- Ability to build equity over time
- Ownership stability
- You’re investing in your future
Cons
- More upfront costs (examples: down payment, closing costs, property taxes, etc.)
- Home value can decrease
- Total responsibility for maintenance and repair costs
Above are just a few of the many pros and cons that you should consider before choosing to rent vs. buy a home. As previously mentioned it’s important to weigh your options and ultimately chose the best option for you.
Are you looking to rent or buy a home? Or, are looking to discuss your options further? Please do not hesitate to reach out to us and let us know how we can be of assistance! We’d love to hear from you!
SOURCES:
https://better.com/content/renting-vs-buying-a-house/
https://www.fidelity.com/viewpoints/personal-finance/rent-vs-buy
https://realestate.usnews.com/real-estate/articles/renting-vs-buying-a-home-which-is-smarter