Choosing somewhere to live is an exciting time. The opportunities are endless and you can choose from a variety of different cities and neighborhoods. Whether you are looking at Victory Park apartments, Dallas, TX or homes on the west side of Phoenix, there are a lot of choices.
But in addition to choosing the city and neighborhood, you also need to choose whether to rent or buy. While the home ownership rate is higher in the USA than the rental rate, there are many people on both sides of the argument. But which is the better option and what are their pros and cons?
With that in mind, this blog post is going to look at the benefits and drawbacks of both renting and buying
The Benefits and Drawbacks of Renting
The main benefit of renting is that it provides you with a lot of flexibility and mobility. When you rent, you generally only have an agreement to live at a particular location for a couple of months to a year. This means you aren’t tied down and can generally move much easier if need be. This flexibility is often great for young families and professionals.
Another benefit of renting is that you don’t need to worry about all of the extra costs that many homeowners will need to consider. If you rent a home or apartment as something breaks or goes wrong, it isn’t up to you to fix it in most cases. Simply reach out to the landlord or rental company, and they are responsible for fixing it up.
Of course, there are also some drawbacks to renting. One is that the money you pay in rent isn’t going towards an asset like your mortgage when you own a home. While this rent money isn’t a waste by any means, it simply isn’t working as hard for you as a mortgage will.
Another drawback is that many complexes or units will have a lot of restrictions. For example, you might not be allowed to have pets or might not be able to personalize the unit in a way you would’ve liked. This can be upsetting, especially for those who want their home to look a very specific or certain way.
The Benefits and Drawbacks of Buying
Buying provides a number of benefits as well. Most notably, you get full control over how the home looks and is designed. You are free to change everything from the color of the walls, how the kitchen looks, and how much art you put up.
Another benefit of buying over renting is that your mortgage is eventually going to the purchase of a major asset. So while it feels like you’re spending money on a mortgage, you are essentially making payments so you can eventually own your home free and clear. Owning your home also allows you to build equity in the home, which will fetch you a higher price when you decide to sell your home.
Of course, it is also important to be aware of the cons of buying a home. First of all, there are a lot of additional costs associated with buying a home. You will need to pay for insurance, maintenance, renovations, taxes and potentially several other fees. These can add up over time, and are something you need to prepare for as a buyer.
Another potential con is that buying a home locks you into a decades-long agreement. You will have a mortgage payment for the foreseeable future, and are tied to a certain city, neighborhood and home. While this isn’t always bad, it can limit your mobility a little bit.
Which is the Best Option?
As you have seen, there are both pros and cons for each of the two options. As for which is the best option, that completely depends on your lifestyle and needs. For example, if you can afford a home, and have a steady job in a city you don’t see yourself leaving, buying will likely make sense for you. But if you don’t quite know where you’re going to end up, or real estate is vastly overpriced in your area, renting is generally a good idea.
Of course, the ultimate decision is up to you and the best option for you might not necessarily be the best option for your neighbor or friend.
In conclusion, we hope that this article has been able to help you decide whether buying or renting is right for you.