Renting vs. Buying: Pros and Cons
Real estate is home to a lot of debates, from what type of home is best for a family to what kinds of flowers makes curb appeal pop out. However, one of the longest standing ones concerns the financial end of the market: whether it’s better to rent or to buy. The answer is not so clear cut, but we provide some pros and cons for each to make your decision easier. Join us today to find out what they are!
Buying
Buying your own home is a milestone in itself, and is something many people look forward to all their lives. Not only is it a lifetime achievement, but it also comes with a whole lot of other pros.
Pros
- Build equity
Owning a home is an investment, both in the figurative and literal senses. It may not be your nest egg, but paying off your mortgage payments in a timely fashion allows you to own equity in your own home, attributing to potential financial stability later down the road.
- Control Your Living Space
Another big advantage to buying a home is the fact that you have total control of what you do in it, allowing you to customize it to your liking. On the other hand, many landlords in their agreement outline what you can and cannot do in their home, limiting your sense of freedom.
Cons
- It’s a Big Step
Buying a home is a huge financial jump, and the remnants of the Great Recession can bring some negative thoughts towards mortgages. However, with careful planning and being honest with your finances, you do not have to worry about foreclosure, so long as you buy within your means.
Renting
Now, let’s take a look at the other side of the debate: renting.
Pros
- Flexibility
If you have a job where you will need to relocate in a few years, or you don’t know how long you are planning to stay in a particular location, then renting may be able to provide the flexibility you need. When you need to get up and move, you simply do not renew your lease, and you’re off—no other red tape or waiting periods to go through.
Cons
- No Housing Security
Unlike owning a home, there is little to no housing security when it comes to rental properties. If your landlord decides that he would like to rent out the property out to someone else, they can just refuse to offer you a renewal. Laws are put in place to prevent landlords from evicting tenants without cause, but that doesn’t mean that they can’t refuse to renew your lease, so long as they provide you with an advanced warning. When you own a home, this is a thought of the past.
Renting and buying is an argument almost as old as time itself, and each one has its merits. Regardless of what you’re thinking, we encourage you to come into our office today to explore your options…we have a feeling we’ll be able to get you exactly what you need.
