Pros of Renting:
Renting gives you more flexibility and freedom. You can make a quick decision to move out, especially if you're on a month-to-month lease.
You have little to no responsibility of maintaining the rented area besides maybe snow removal and lawn care if applicable. If there is a problem you can tell your landlord, and they will do all the repairs and maintenance for you.
Renting quite possibly may be cheaper than owning a house. Also, because you aren’t footing the bill for repairs or maintenance, you know exactly how much you will be spending at the end of the month.
If you work or travel frequently, then renting a house or an apartment is the best decision as you won’t have to burden yourself with the responsibility of maintaining the property. Especially if your job requires you to up and move around to different areas frequently.
Cons of Renting:
You cannot build equity if you’re renting a property. It will be your home, but it won’t be your asset at the end of the lease.
Your landlord may increase the rent at any time.
You cannot make any changes to your house or your apartment without your landlord’s approval, even the paint color on the walls you may want to redue. It needs to be approved or you may face consequences.
There are no tax benefits to renting a property.
Many houses available for rent have a “No Pets” policy. So if you’re an animal lover, finding a place to rent that allows pets can be hectic and complicated. It sometimes can be extremely difficult to find a home that will rent to pets.
You are bound by the rules and obligations in your lease agreement or face penalty if you do not follow them.
Your landlord can evict you at any time through eviction processes. They can also put the property up for sale to make a profit if real estate values increase.
Pros and Cons of Buying a Home
Just as there are advantages and disadvantages of renting. The same goes for buying a home as well!
Pros of Buying a Home:
Owning a house can give you a feeling of stability and settlement. There is also the pride of owning a property.
There is complete freedom of redecorating and renovating the property as you are the owner. You can do whatever you want to the inside of your and most of the outside.
Buying a house can serve as an investment. You can buy it and then rent it out to earn monthly profits. Overtime most property values grow so selling it down the road will most likely turn a profit.
You have complete freedom to live the way you want. You can have pets, you can change whatever you want. You can renovate and much more without anyone stopping you or penalizing you!
Tax benefits! You can deduct your mortgage interest payment. Plus, you build equity while paying off your loan.
You have your own privacy and do not have to worry about your landlord popping in for surprise visits or inspections.
Cons of Owning a Home
Although you don’t have to pay rent every month, property taxes can go up, as well as paying for your mortgage, insurances, and general costs of living that come with homeownership.
You can lose the value on your property over time instead of gaining it. You can end up selling a house you bought for $425,000 for the same price or less 20 years later. When considering inflation in currency. This means you lost money on your home investment. This can happen depending on market trends and the area you live in.
Your monthly expenses may vary depending on what you need for the house. You might not spend much one month, but may end up spending $25,000 on roof or $10,000 on HVAC systems the next month unexpectedly.
If you are a restless person. Home ownership might not be for you as it provides less mobility and freedom. If your job requires you to travel or relocate frequently. Buying a home may be difficult or financially impossible.
Buying a house can be much more expensive than renting one considering all of the costs and hidden things that can pop up. Owning a home is a lot more responsibility. You have to pay for your own maintenance, or make time to take care of the household issues yourself.
A home is not a liquid asset. This means that if you ever plan on selling your property, it may not be as quick of a process as you expect. It also costs money to sell your home.
So before you buy or rent talk to a realtor or contact me! A realtor can work through any questions, concerns, or issues that may be conflicting you from making a decision. Realtors like myself have many contacts and resources to help with any financial issues that you may want to address. Hopefully this article may be able to help you make a decision on what's right for you!
-RE/MAX READY EDDIE