When it comes to deciding whether to rent or buy a property, it can be a tough decision. There are many factors to consider, including budget, living situation, financial goals, and lifestyle. To ensure you make the best decision for your situation, it’s helpful to weigh the pros and cons of both renting and buying. You might be wondering if you should rent or buy, well we have laid out a few tips for you to consider.
1. Mobility: Renting a property allows you to be more mobile and flexible. In some cases, you can even sign a short-term lease. This is especially helpful if you’re not sure if you’ll stay in one place for a long time or if you’re just starting out and don’t have the funds to purchase a home.
2. Fewer Costs Upfront: When you rent a property, you generally don’t need to pay large upfront costs such as a down payment and closing costs.
3. No Need to Maintain or Repair: As someone who rents, you don’t need to worry about maintenance and repairs which are typically the obligation of the property owner.
1. Lack of Ownership: One of the biggest disadvantages to renting is that you never own the home. No matter how long you stay in a rental property, the house will remain the property of the landlord. This means that you don’t have all the same rights and benefits that come with home ownership such as tax deductions, pride of ownership and potential value gain or depreciation.
2. High Costs: Another downside to renting is that it can be expensive. As the landlord owns the property, they’re able to set the rate for rent which can go up or down over time. And if the market is in demand, it’s possible that the cost to rent will be higher than it would be to purchase. Apartment Therapy tells us, "Remember, rents are consistently going up, little by little. “There’s always going to be a modest two percent annual increase,” explains Los Angeles-based real estate agent Ashley Temm. 'But the average rent for a one-bedroom apartment in this city is up 18 percent from last year. I foresee that trend continuing.'"
3. No Control Over Property: As a renter, you have little to no control over the condition of the property. When something needs to be fixed or upgraded, you may need to ask the landlord for permission which can be a longer process than if you owned the house.
1. Financial Benefits: When you purchase a home, you’re building equity over time and investing in yourself. This can be seen as a long-term financial benefit, as the value of your home typically increases over time. . According to Rentberry, "It’s fair to admit that as of today, U.S. homeowners may pay almost 33% less than renters if they take a 30-year mortgage, pay taxes and spend money on house maintenance."
2. Stability: When you buy a home, you may have the option to lock in a fixed-rate mortgage which provides more stability and predictability in terms of your monthly housing costs. If you want a breakdown of all the costs for buying a home, look at this blog from Trulia.
3. Customization: When you buy a property, you have the freedom to customize and upgrade as you please which provide you with more control over your living arrangements and could potentially increase the value of your home.
Your lease might be ending with your rental property within the next few months, and you might be in the middle of choosing to rent again or buy for the first time. We would love to get on the phone with you and talk about the ways you can start the home buying process!