Renting vs. Buying A Home…Which Is Better?
This is like the old question of the chicken or the egg – both have two distinct schools of thought. Both have their merits and both have their downsides. When deciding whether renting vs. buying a home, it really comes down to weighing the pros and cons to come up with the path that is best for you. Let’s walk through some obvious wins and shortfalls for each.
Pros And Cons Of Renting A House:
Pros:
- Not as large of a financial obligation as owning your own home as you only need the equivalent of first and last month’s rent
- Set overall monthly payments to help you budget and you don’t have to pay for things like property taxes
- Less responsibility – you’re off the hook if any big ticket items like the windows or roof need replacing
- Moving is quick and painless, you can just give your notice and move on
- Not as much maintenance – yes you may be responsible for snow removal and grass cutting, but most other maintenance items fall on your landlord and often if you do them, you’re eligible for reimbursement
Cons:
- You’re paying someone else’s mortgage
- Can be limiting in terms of what you can do with your living space. Some landlords don’t want you to paint, hang shelves or make any modifications to the home.
- A landlord can impact your freedom of use and ask you not have to pets, etc.
Pros And Cons Of Owning A Home:
Pros:
- A home is an investment. If you make smart decisions you can end up making money in the long-term
- You have total control over your property and can complete all of the modifications or renovations you like
- You can turn your basement or added living space into a legal rental and use the profits to pay down your mortgage, put into savings or invest
- After your home has gained equity, you can get a home equity loan to finance additional purchases like home renovations
- You have increased security in knowing that each and every decision from decorating to selling is yours to make and can stay in your home as long as you wish
Cons:
- A home can become a financial burden if you have to do things like replacing the windows, HVAC system or roof before you have budgeted to do so
- Depending on the age of your home, annual maintenance can be a costly and time-consuming thing
- You’ll need longer lead time if you wish to relocate as you’ll need to prep your home for the market and negotiate a closing date that works for you
When choosing if renting or buying a home is better for you, it’s a great idea to sit down and look at your long term and short term goals, your financial situation and lifestyle overall.
If buying a home is a good fit for you, give us a call today! Our dedicated team will help you find your dream home that you’ll be ecstatic with for years to come.