Renting vs. Buying....it's a popular topic for a great reason. There are a lot of items to consider when you are looking to make the transition in your housing situation. Especially if you are a first-time home buyer and deciding if you want to embark on the journey of home ownership.
Let's look at the pros and cons and help you decide which option might be the best for you!
Renting Pros
- Flexibility: Renting can provide a certain level of flexibility if you aren't sure you want to stay in the same location for an extended period of time.
- Landlords: When it comes to repairs and maintenance, there is a certain level of safety and security in a financial aspect when you know that it's the landlord's responsibility to take care of these items.
- Cheaper: Often times renting can be cheaper depending on location and amenities. If you don't have a lot to invest in a home or a down payment, this can be the best option when it comes to making the smartest financial decision while you are building your savings toward buying a home.
Renting Cons
- Rental Fee Hikes: The cost of rent can go up from year to year without warning. This can be a drawback or a positive depending on how you look at it. It may force you to move somewhere else, being a much-needed change, or it can be disruptive not knowing the fixed rate monthly that will change at any given time in the future.
- Noisy Neighbors: When you rent, you don't always know who your neighbors will be, and living in such close quarters in an apartment building for example can be an issue if you don't get along well. (now, this can also occur in a neighborhood when you own a home, but it's something to keep in mind when you are sharing a wall.)
- Parking: Often times parking can be uncovered and unpredictable in a rental situation such as an apartment, condo, or townhouse, so just something to consider if you have a nicer vehicle and want it out of the elements.
Buying Pros
- Equity: This is probably the biggest pro that people think of when buying. You have the ability to start building equity in a home and start that financial investment.
- Your own space to do what you want: This is also a huge reason want to buy. They want their own space that they can decorate, invest in, and nest in. When you own your own home, the sky is often the limit in what you can do to your place. (keep in mind HOA rules can dictate too.)
- Fixed Monthly Rate: This is the nice thing about buying your own home. You know what that monthly mortgage is going to be month to month. Yes, there are rate increases here and there due to taxes and insurance adjustments, but overall, your rate stays generally in the same range, whereas with renting it can increase by hundreds of dollars without notice.
Buying Cons
- Repairs: When you own your own home, it's all on you. Storm damages, repairs, accidents, etc... you are responsible for getting it all fixed. Yes, insurance helps with that, but oftentimes large deductibles aren't worth it when it comes to simple repairs. If you are a handy person, you can easily do these items, but for someone on their own without those skills, this is something to consider on labor and cost.
- Needing to Sell: When you are ready to sell your home and make a change, you are often at the mercy of when you can get a buyer and that can sometimes dictate your ability to get out of your investment.
- Costly: Buying a home is a big investment and can cost a lot in fees and items you might not be aware of initially. Down payments, repairs, lawn care, decor, HOA fees, and more can start to add up. If you don't have savings or a fixed income, this can become a sense of stress that you aren't ready for and might have to consider this before buying a new home.
Ultimately it's a personal decision for everyone as they consider which option is best for them and their situation. As a Realtor, my job is to help you evaluate these things and navigate through the process.
I never want my clients to get into financial hardship, so I will help you assess your situation and see which option might be best for you. I work closely with lenders to help you get the best rate, credits, and more. If you are ready to start the process, let me know!
405-655-2501
®Alaina Legendre - Dillard Cies Real Estate
