One of the biggest and most expensive decisions you’ll make in your lifetime is purchasing a home. It requires a lot of thought. Many people get cold feet when planning to buy a home, which pushes them to weigh their options, whether to buy or keep renting. According to Davy Talley – Keller Williams, a top real estate agent, there is no right decision. Each person needs to consider their wants and needs, why they want to buy a home vs. rent, as well as their finances. Analyzing buying versus renting can be a little tricky, especially as both options offer their pros and cons. Below are some of the information you need to be aware of before making a final decision.
The Pros and Cons
Renting a House
Renting a house offers a wide range of advantages. Some of the advantages include;
- Easy mobility. You can move jobs from one state to another without worries.
- The landlord caters to your maintenance needs, thus reducing unforeseen expenses.
- You are not required to pay expensive closing costs each time you pay your rent or move into a new rental house.
- Stable monthly expenses on rent
- You can test-drive different houses in different locations before selecting the right fit.
As much as renting offers a wide range of advantages, some of the associated disadvantages include;
- You have no access to equity no matter how long you have lived in a rental property.
- Your choices in terms of personal customizations are limited to what the landlord agrees to.
- Rent could be increased at any time.
- You may be booted out of the rental property at any time, depending on the landlord’s decision.
- You have a limited sense of stability as you may be required to vacate the rental property after a due notice period.
Buying a House
A home purchase has its advantages. Some of the common advantages you can look forward to include;
- You can build equity over time, thus giving real access to your money’s worth.
- Home value increases with changes in the real estate market prices.
- Unlimited freedom to customize your personal space through remodeling and renovation projects
- Access to tax benefits
- A sense of stability is guaranteed.
Although homeownership offers a wide range of advantages, the major associated disadvantages include;
- Closing costs can be expensive.
- You are saddled with the maintenance responsibilities of your home. This requires lots of money, time, and energy.
- Reduced mobility flexibility. You cannot decide to take a job in another state or another part of town without due planning.
- The home’s value may decrease based on the real estate market forces
- You may not have access to tax benefits due to changes in tax laws.
Rent or Buy: Making a Decision
How long do you plan on living in the same place?
One of the biggest factors that can help you decide between renting and buying a home is mobility. First, ask yourself how long you plan on living in one place. If you have long-term goals of living in the same place, the best decision would be to purchase a home, especially if you have the means. However, if you are nomadic and prefer to migrate from time to time, renting a house is the best chance to maintain this lifestyle.
Cost Implication
When considering whether to buy or rent a property, you need to consider the costs associated with the entire decision. By buying a home, you stand a chance to face out-of-pocket costs on the purchase, maintenance, repairs, and more. You can compute these costs and compare them with the average costs to be paid in rent monthly while factoring in inflation and the increasing cost of renting a home. If your goal is for the long run, owning a home will be a lot cheaper compared to renting a house for years to come.
Mobility and Stability
Another important factor to put in mind when deciding between renting a house and buying one is your mobility or stability. If you are ready to start a family and have found a great neighborhood with great schools and other amenities, the choice of buying a home appears to be more feasible compared to renting a home. Consider that you may have to change schools for your children over the years to reflect your renting decisions. This may affect their mental, social, and academic lives. On the other hand, if you have no roots and tentacles to tie you down and hope to explore more someday and travel the world, renting may be a better option for you.
