Whether to rent or buy the place where you will be living is a major decision that will affect your lifestyle and size of savings that you accumulate over the years. Renting offers flexibility, predictable monthly expenses, and someone to handle repairs while homeownership brings a sense of stability, belonging to a community, and pride of ownership, along with tangible benefits like tax deductions and equity.
Contrary to popular belief, owning isn’t always better than renting, and renting is not always simpler for everyone. Consider the pros and cons of each to figure out whether renting or owning is best for you.
Cost
For years, the rule of thumb was that renting is cheaper than owning—so renting freed up money for other things, such as savings. However, that may not always be the case. Shifting real estate markets means it may be cheaper to own than rent in certain areas, though you likely need to pay more up front.
Remember how little renter’s insurance cost you? Well, homeowner’s insurance, unfortunately, will be a lot more. Not to mention the added expenses of HOA fees, property taxes, higher utility bills, and the upkeep of your home including maintenance and repairs.
Repairs
One of the biggest benefits of renting is not having the unwanted stress of repairs that is usually accompanied with homeownership. If you decide to rent, repairs will generally cost much less and your landlord will likely take responsibility for fixing things like a leaky faucet or broken AC unit. But this doesn’t always mean that things will be repaired to your satisfaction, or at all, as opposed to owning a home where you can be in charge of any and all repairs.
Yes, renting will save you money on repairs and upkeep, but you may not have the ability to update or personalize your living space. Owning a home allows you to customize with renovations, some of which may boost your home’s value.
Travel
Do you enjoy having spare time on evenings and weekends to do as you please? Do you travel often for work or leisure? If so, the time commitment that comes with homeownership might be more than you want to take on, considering the extra time that you will need for repairs and upkeep.
Renting offers the flexibility you may be looking for, especially if you aren’t committed to one area. However, if you are looking to commit to one place, homeownership would likely be the best decision for you. Owning a home is a more permanent solution especially for those who are looking forward to setting down roots.
What’s Best For You
Whether you are wanting to rent or own, each option has pros and cons that need serious consideration. Think about your comfort and vision for your life—where do you see yourself in the future?
While renting can be a stable option that offers less financial burden, owning a home provides a more permanent place to raise children and get involved in the community while also being able to create the sort of residence you want for yourself or your family.
The right option for you is the one that best fits your finances and goals. So ultimately, you need to take into account the type of person you are and where you see yourself at. That’s why it’s so important to ask questions and think for yourself. Because no one can make this decision for you except, you.
If you are considering whether to rent or own, have questions or concerns, or just simply want someone to talk to, contact the professionals at Sellstate Alliance Realty and Property Management. One of our knowledgeable and experienced agents would be more than happy to help you through this big life decision.