Renting vs. buying

Buying vs. Renting

Should I buy instead of rent?

Deciding on renting vs. buying is something to think about when you are thinking about your future. There are many advantages to purchasing a home such as more stability but there can also, be disadvantages such as more bills, yearly taxes. It is good to make a list of what is important to you and your family when considering buying a home.

Advantages vs. Disadvantages

Advantages Vs. Disadvantages

There are advantages and disadvantages to both renting and buying. Renting gives you flexibility in being able move to different locations in less of a time frame than owning a home. Although renting is less stable it is also less of a headache acquire. You do not have to give as much of your financial information or make any long-term commitments. In fact, not wanting a long-term commitment is a big reason many people choose to keep renting. The drawback to renting, is possible financial instability due to increased rents. In fact, some rents are higher than some mortgage payments. Another drawback, is not being able to customize your space to your liking.  People who choose to rent vs. own may not know how easy it is to buy if you have good credit and a good job. You do not need to wait to get married or start a family to start thinking of home ownership. The benefits far outweigh renting benefits.

There may be two main reasons couples and families buy at a much higher rate than singles: first they have two incomes in one household and second is the possibility of children, or they have children and want more security.

Good Reasons to Buy a Home

Good reasons to buy instead of rent are:

  • Build up equity in your home
  • Tax breaks
  • Customize your home
  • Stability in your living space
  • Stability in finances as it is a way to safeguard against inflation
  • Pride in homeownership
  • Control over your monthly outgoing payments
  • Room for growth in families

More Things to Consider when Buying a Home

More things to consider

When considering to purchase a home vs. rent you will want to think about a few things. First of all, how long you plan to stay in that area. Buying will give you a longer stay at a better price point than renting. Tax benefits are another thing to consider. You can write off mortgage interest paid and property taxes. You will also need to consider that there will be closing costs, inspection fees, title and mortgage insurance fees, and possible HOA fees. These need to be factored into the monthly payments before purchasing. This way you know exactly how much will be going toward the home and home expenses. Also owning a home requires more bills than renting. You will have to upkeep the landscape, home appliances, the possible painting and decor of rooms, new doors, sinks, kitchen and décor. Home upgrades can be costly. Also, you will need to pay water, trash, and other utilities like solar if you want to have a eco-friendly home. Even with all these added costs, buying will be more affordable option over time.  The equity that you build can be taken out at a later date in case of an emergency or used to upgrade your home or even a HELOC. Click here for the renting vs. buying calculator.