Buying versus renting is the age-old debate when it comes to homes, but is one really better than the other? The answer depends on your lifestyle preferences and financial situation. As a result, there is no right or wrong answer to whether home ownership is better than renting or vice versa. However, there are factors that can assist you in making a decision. There are pros and cons of buying a home and renting a home.
Homeowners prefer stability. After buying a home, you can’t easily move. In 2021, the average homeowner stays in their home for 10.5 years. If you want a strong community or are starting a family, consider ownership. Buying a home is a “permanent” decision, so you should research all your living options before making the big purchase.
Homebuying offers a monthly mortgage rate that is comparable to rent. Unlike renting, your mortgage payments build equity in your home, which can increase your wealth over time. Thus, buying a home is a transfer of assets to a less-liquid form, not a loss.
Homeownership often costs more than renting, including mortgage payments. Property taxes, maintenance, homeowner’s insurance, electricity, internet, and trash are examples. Large maintenance repairs can be costly and unexpected. Depending on location, job prospects, crime rate, neighborhood population, and economic conditions, your home may lose value over time.
Renting allows you to live a nomadic lifestyle by moving frequently. If you travel often, move for work, or just want a change, this gives you flexibility. However, when you it has a drawback—the landlord controls your stay. If you keep renewing your lease in one place, the landlord can refuse, accept, or raise the rent. If the landlord sells the house, you must leave immediately.
Moreover, renting monthly has pros and cons financially. It does, however, give you a monthly housing budget. The costs, when renting, are usually flat, unlike homeowners’ expenses, which vary monthly depending on property taxes, maintenance, and repairs. Renter’s insurance usually covers property maintenance, such as fixing a leak.
Your monthly rent is negotiable after your lease expires, even though you know it. Depending on the location and desirability of your rental home, the landlord may drastically raise prices, forcing you out. Unlike mortgage payments, your monthly payments now go toward living in the home. The landlord controls maintenance because they pay for it. Thus, home repairs may be substandard or delayed.
If you have a preferred agent to work with, let us know and we will forward your information to them. If not, we will happily introduce you to one of our qualified agents to assist you in the buying or selling process.
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