Should you rent or buy a home? It’s not an easy question with one right answer for everyone. That’s why we’ve created the following pros and cons lists for you so that you can weigh your options.
The Pros of Renting
- Flexibility and mobility: Leases generally last for a year or less, which is a definite pro if you need to relocate for work or other reasons.
- Maintenance free: The air conditioner is out? Call the maintenance person! When you rent, someone else mows your lawn, cleans your gutters, and fixes your clogged toilet. That is a BIG positive!
- Short-term savings: Buying a home means lots of upfront costs, property taxes, etc. It can be easier to save in the short-term when you rent.
The Cons of Renting
- No equity: When you rent, you aren’t working toward ownership, or building equity to borrow against in the future. Once your monthly payment is made, that money is gone forever, and it isn’t working for you in any way.
- Asking permission: Love pets and want to get a puppy? You have to ask your landlord first. Want to repaint, or remove a hideous light fixture? Again, you have to ask. (and often, the answer is no)
- Rent increases: When your lease runs out, your rent can be increased to an amount that isn’t in line with your budget.
The Pros of Home Ownership
- Financial security and stability: If you have a fixed-rate mortgage, your principal and interest rate will remain the same for the life of the loan. No surprises!
- You’re in charge: Homeowners can customize their homes just the way they want it. When you own a house or apartment, you can truly make it a home.
- Building equity: Homes typically increase in value. Unlike renting, when you pay your mortgage every month, you are building equity that you can use for your future. And, of course, you can sell your home and make a profit.
- Tax benefits: Did you know that there are many tax benefits for homeowners? It’s a great benefit of buying a house vs. renting.
The Cons of Home Ownership
- Less flexibility: When you’re a homeowner, you’re responsible for the mortgage even if you have to relocate for work. You must keep paying the mortgage until you can sell it to someone else.
- Higher upfront costs: When you first buy a home there are all kinds of expenses, such as closing costs, a down payment, fees, and title insurance
- You are in charge of maintenance: When your home needs repairs or renovations, you’re responsible for it, and you have to pay for it.
Now that you’ve looked at the pros and cons, is it obvious which is best for you? If not, take a step back and ask yourself: What feels right? And remember that you don’t have to decide on your own. We are happy to sit down with you anytime to discuss the pros and cons as they relate to your current financial situation. And we can help you to make a plan for your future.