To rent or not to rent? To buy or not to buy? Those are the true questions (at least if you’re in the real estate market.) Whether one should rent or buy a house crosses everybody’s minds when looking to move to a new place. What it really breaks down to, is how secure you feel with your current career, lifestyle and financial status. I’ve done some digging and found some pros and cons of each option that I find noteworthy.
For someone who is in college or developing a new career, renting is by far the best option. Most people use renting as a segue into eventually finding a permanent residence while working on their personal life. Renting allows flexibility to move if the need arises. If you are not completely established in your career, or are actively looking to settle in a potential area, renting will allow you to research and discover where you would want to live. This also makes moving an easier task to complete. An additional advantage to renting is little to no maintenance costs. If pipes break, sprinklers don’t work, or door knobs fall off, the landlord usually takes care of the repairs for you. The only thing you have to do is pick up the phone.
Although there are some great advantages, there are several disadvantages to renting. One of those being restrictions on remodels/replacements. Landlords generally like the way they have things set up and don’t want anyone to change that. In most cases, requests must be sent in the the landlord for approval, even for something as simple as new paint. Another disadvantage would be rising rent costs. The housing market can change at any moment and certain events may cause the rent to increase. One factor that influences this is a shortage of available rentals. After the market crash in 2008, building of rental properties slowed and investor confidence shrunk. This creates a high demand and little supply which forces prices upwards.
If short-term living doesn’t suit your needs, look into buying a home.
There are several advantages to buying a home that renting doesn’t offer. One of those being equity. This tends to be the biggest advantage to buying versus renting. The more you pay off the principal, the higher your equity, or ownership, becomes. This not only builds your financial wealth, but also serves as a valuable asset to use in future investments. One more advantage is the independence and freedom you experience. You have the choice to do whatever you want with your home. No one will be there to kick you out or raise your rent payments so you can focus on making your house a home.
The biggest issue with buying a home is the fact that you are locked in. You don’t have the ability to move quickly and you must make your mortgage payments. This is why it is always a good idea to make sure you are in a stable career and family situation. Although there is no way of knowing what will happen, having a plan for your future is the best scheme to have when making the decision to buy a home. A further con is the homeowner is responsible for all costs. These costs include property taxes, maintenance and repairs, a down payment and mortgage payments. Not to mention closing costs, inspection fees, and real transfer taxes will also be included! You need to be prepared for these costs and then some if you plan on going through with your purchase.
Before you make your decision, you need to look at your current financial situation and lifestyle. Make a plan for what you want your future to look like. Can you afford all of the costs of buying a home? Do you plan on staying in the same place for more than a few years? These are some of the questions you should ask yourself to see if you are ready to buy a home, or decide to rent.
How do you get started?
If you’re interested in renting, please check out our Rent to Own program.
If you’re ready to become a home owner, check out the fantastic First Time Home Buyer program we have.
Of course, you can always just call us at 970-573-6441.