The big question! Should I buy or rent a home? Well the truth is there are a few factors to consider when you are weighing your options. Listed below are pro’s and con’s for renting and buying. Some moral, some financial or maybe even some legal factors are to be considered. But when you are trying to decide which choice to make or which road to follow you should take a hard look at the pros and cons. This is not a real estate agent trying to convince you to buy a home but to help you figure out which option truly is the RIGHT option for you. Let’s dive right in.
Renting - Pros
The upfront cost for renting a home is less. In most cases you simply must come up with the application fee plus first and last month’s rent
If you find a home, you like for rent on Monday you could be moved in by Tuesday
If something were to come up, you can move out once the lease is up. No waiting for your home to sell, fixing up the place for pictures.
In many cases the landlord is responsible for maintaining the property’s utilities. Meaning if the hot water tank or furnace goes out or a leak in the roof you simply call, and it is paid for by the owner.
Owning - Pros
Make your home YOUR home
Move right in and start painting, decorating, hanging pictures, putting in new carpet or refinish those hard wood floors and really make the home your own
You can write off the home taxes, it might not be much but it’s something
Your monthly payments should stay consistent outside of your taxes and insurance
Investing in yourself
With owning a home, you can simply sit back and rest confident that your home value is on the rise. But more importantly you can insure it is by doing small updates through the years. Remodel your kitchen or bathroom and have that equity when you are done.
This means you want pets you can have pets. You want to knock a wall down it’s your home to do so.
The big one
Financial security. You have spent years in this home; taking care of it, fixing it up. After all this time, energy, effort and money now its time to sell and when you do you walk away with equity that you have saved, built and put into that home.
Renting - Cons
Investing In Others
When you rent, the money you are paying to rent is going towards paying off the bills of others, you are essentially investing in your landlord’s future and not your own
I know we just said this was a pro, but landlords have the right to sell the property to another party which could result in rent increases or turning your apartment in to condos resulting in you needing to find another place to live
Home Décor Limitations
If you like to come in and really make the house your home most times there are a number of things off the table, or that come at a price. Any sort of remodeling such as replacing carpet, or a bathroom sink or toilet, painting or even hanging pictures can come at a cost or simply be not allowed
Limitation on family members
No, renting doesn’t mean that your great aunt from down south can’t come live with you. But many landlords do not allow pets. Those that do put restrictions on the size or breed and almost all put an additional cost to your rent.
But the number one thing most people think about when renting is when they move out, they walk away with nothing. After paying for a home, taking care of it for years, keeping it looking nice and helping to pay it off for the landlord you simply walk away with nothing to show for it.
Owning - Cons
Minimum conditions required
Buying a home is fun and exciting and nothing says I believe in me like investing in your first home. But there are several conditions required for a mortgage that buyers must meet such as: a minimum credit score, debt to income ratios, saving patterns and more.
Bigger up-front commitment
Buying a home means more money down for the down payment, inspections, appraisal plus any immediate repairs needed before you can move in
While this is always important and should be done no matter your living situation it is extremely important to make sure you budget, plan and live within your means.
All the responsibility
Getting all your money back at the sale of the home means you must take on all the cost as well. This means if your furnace goes out you must replace it. Pipe burst, you call the plumber. The good news is you can avoid large pay outs by protecting yourself with insurance and home warranties
Investments can have ups and downs
Over the years the housing market has ebbed and flowed just like the waves on a shore. While everyone hopes the value of their home does nothing but rise the truth is there are things outside of the homeowner’s control that can cause it to decline.