Renting vs Buying. Let’s dive into each and look at the good reasons and the bad reasons why one may be a better option for you than the other.
Let’s start with Renting:
– Renting offers the flexibility to move easily in comparison. Often renters commit to a 1 year lease however many landlords do offer leases as short as one month giving you the ability to pack up and move quickly.
– Renting doesn’t carry the overhead costs that comes with homeownership. The upkeep of the property including replacement or repair of roofs, toilets, dishwashers; just a few items amongst a very long list a property owner has to cover. I haven’t even mentioned the landscaping costs. All of this can really add up.
– Renting generally only comes with the down payment of a 1 – month security deposit whereas a mortgage can require a down payment of 0 to the very least 5% depending on one’s qualifications.
– Renting a property may offer amenities that you might not otherwise get when owning. You may trade off having your own garage and back yard for a very nice rental unit including a clubhouse with a pool and gym for the same rent payment that could afford a home.
Now let’s discuss the reasons to Buy:
– Buying a home offers less restrictions and several possibilities to custom to your particular wants. It’s otherwise individualized to your wants and needs and offers privacy that sometimes you won’t get when you’re a renting. If you want it, you can add it. A pool, a new deck, an upgraded bathroom; the opportunities are endless. You have the freedom.
– Buying a home is an investment. Home value appreciation can lead to increased personal wealth that you’d otherwise not get as a renter.
– A taxable benefit for many. Buying a home can offer tax benefits otherwise not afforded to a renter. You’ll want to consult with a tax preparer or Certified Public Accounts (CPA) but in many cases interests paid on the mortgage and property taxes can reduce your taxable income.
– Buying a home also offers stability. Planting your roots and settling into a home for an extended period of time can connect you to the community where your children can get a education and your family can further connect with the community.
In all there are many advantages to each. It’s truly up to your wants and needs however if you do plan to stay one place for awhile, it certainly does make sense to become a homeowner. Many times you’re able to afford a home for the same payment you’d make for rent. Buying a home is much easier than most people think. There are several programs available that offer little to no down payment and help even credit challenged borrowers get the financing they need to buy.
If you are currently renting and considering making the move to homeownership, you can see all of our loan options here or contact us today and find out how we can get you pre-approved!