Pros and Cons for Renting and Buying
When it comes to buying a home, often times families have a conversation whether it’s more beneficial to rent or buy. Especially when it comes to first time homebuyers or people new to the area, buying can seem like huge step forward that often feels intimidating.
I’m a big believer in looking at both sides and gathering the facts to make an informed decision, so I wanted to take a few minutes to share some pros and cons about renting and buying. That way you can make the best decision for your family!
Renting
When it comes to renting, there’s definitely less pressure on your finances and responsibilities, but it can also feel like you’re not investing your money. Take a look at these pros and cons
Pros:
You have flexibility to move (depending on the contract you sign)
Someone else is responsible for repairs and maintenance (all I can say is woohoo for this one)
It’s typically easier on your finances since there isn’t as large of a down payment or any costs associated with inspection, closing, etc.
If you’re new to the area, it gives you time to decide where you’d like to be more permanently.
Cons:
In many ways you are just giving money away. There’s not much of an investment element to renting.
Depending on your contract, you could be limited on how much you can make your house your own (ex. Paint colors, holes in the walls, additions, etc.)
You have limited control over ongoing costs. For example, if your landlord chooses to raise rent or sell the property, there’s often not much you can do.
Buying
Buying a home is definitely an investment, but it can be fun and exciting and have a great return! Here are some pros and cons for buying.
Pros:
I keep using the word “investment” but it really is that! When you buy a house you build up equity over time which is great!
There are tax benefits to owning a home!
You get to really make your house your home. Feel free to be as creative as you like when it comes to decorations, renovations, and overall feel of your home!
Owning a home gives you a sense of belonging and permanence. Even if you don’t plan to live in this house your whole life, owning a home means you get to know the community and people around you!
Cons:
It’s no secret that buying a home can initially be expensive. Consider all of the costs associated with down payments, earnest money, closing costs, etc.
When something breaks at your house, it’s your responsibility. This can mean time, money, and stress.
Risk: while there is definitely homeowner’s insurance, there are also risks of owning a home. If a natural disaster comes through, or you discover an underlying problem with the house, there is unfortunately a potential for loss.
This list is by no means complete, but hopefully it gives you a good starting place if you’re having the rent or buy conversation!
Next Steps
If you’d like someone to talk through the pros and cons with, or ask more questions, please reach out to me anytime at (405) 812-1204 or lauren@sargeantteam.net.
