If you’re caught in the debate between renting vs owning a home, you’re not alone. This is a common situation that many people find themselves in when they reach a certain point in their lives. But the reality is, there are pros and cons to both, and every situation will differ from the next. So to help you determine which is the best choice for you, here is a brief breakdown of both.
Owning a Home – PROS
Building Equity
When you purchase a home, you’re able to build equity as its value increases, creating a comfy nest egg for the future. If you ever decide to sell it down the road, you’ll be able to do so at a profit. You can also use this equity to pay down other high-interest debts or make improvements to your property.
More Stability and Security
Owning a home gives you more stability and security. You won’t have to depend on the decisions of your landlord, who could decide to suddenly sell the property that you’re renting. You can sleep soundly knowing that you get to make the decisions.
You Can Customize It
This also goes for renovations and decorating. Unlike rental properties, you can customize your home as you please. You won’t need to seek approval for any enhancements. For example, if you want to renovate the bedroom or bathroom, you’ll have the creative freedom to do so. Home improvements are also a great way to enjoy your living space while increasing the value of your property.
Control Over Costs
Landlords can decide to increase the cost of rent, which can catch tenants off guard and leave them in a difficult situation if they can’t afford to pay more. As a homeowner, you’ll have complete control over what you’re paying.
Owning a Home – CONS
It Costs More
Owning a property comes with a lot of costs. This can include some unexpected maintenance and repairs costs that weren’t planned for. If the roof needs replacing or a pipe bursts, you’ll need to fork out to pay for those repairs.
The Down Payment
Before buying a property, you’ll need to save up enough for a down payment which can be challenging if you don’t have the funds. This initial steep buy-in for homeownership might be enough to deter you.
HOA Fees and Property Taxes
There are other fees that you’ll need to be prepared for as well, such as home ownership association fees that can cost hundreds of dollars each month. Property taxes can set you back as well, costing thousands of dollars each year.
Renting – PROS
There’s No Down Payment
For many people, coming up with a down payment just isn’t feasible. In this case, renting is their only option when affordability is the main factor in their decision.
It’s Easy to Relocate
When you rent, you have the freedom and ability to easily move around when you want to. You won’t be stuck to one property or location. So if a job opportunity arises in a different city, you could take it without having to think twice.
Maintenance and Repairs are Paid For
When it comes to repairs and maintenance, it won’t be your problem to deal with. The landlord will be responsible for handling any necessary maintenance on the property.
No Property Taxes
Since you don’t own a property, you won’t have to worry about paying property taxes.
Renting – CONS
Rental Fees Can Increase
The price you pay is always subject to change. If your landlord decides to increase the rental fee, you’ll have no choice but to pay it or look elsewhere. Also, you could be stuck with much higher rental rates as properties appreciate.
No Equity
Rental payments go directly to your landlord, which means you won’t be building any equity. Instead, you’ll be adding to your landlord’s wealth. This could be viewed as throwing money away.
Can’t Improve the Property
If you want to make any modifications to the property, you’ll be restricted in most cases and limited by your landlord.
If you’re ready to buy your first home, we can help you navigate through this entire process with ease. Contact Jennifer Gale Real Estate today for the most trusted team of real estate professionals you can count on.
