So, you’re ready to find a new home. One of the most difficult (and important) decisions for prospective buyers is whether to purchase or rent their next home. And like most things in real estate, there isn’t a one-size-fits-all answer to this question! However, your personal answer relies on many different factors, including your lifestyle, where you live, the size of your family, future plans and your financial position.
Many of us view buying a home as an investment, and for good reason. Yes, buying a home is expensive, but depending on a few different factors, it could majorly pay off in the long run. Not only are you investing money into a home that you will later be able to sell, but by purchasing, you’re likely building equity and a source of tax deductions. However, this doesn’t mean buying a home is always the best option! Contrary to popular belief, renting has many perks!
If you’re not planning on staying in the same place for long, or you sense big changes happening in the foreseeable future, it may be better to hold off on buying, and rent instead. Renting has a number of advantages that should not be overlooked. For one, it offers much greater flexibility, as well as a landlord that will handle any repairs for you. Additionally, your monthly expenses will be fixed, much like an apartment. No surprise bills here!
So, let’s address the biggest myth about renting. Many people view renting as “throwing away money,” because your monthly payments aren’t going towards owning a home that you can turn around and sell. The truth is, this statement is much too simplified, and simply isn’t true. Like we’ve said, It’s all about your personal situation.
Perhaps you’re only planning on staying in a house for 3-4 years. The closing costs associated with purchasing said home will often outweigh the amount of money you would “save,” by buying. In fact, you may find that the exact same home would be cheaper to rent for that specified time period. In this case, you’re actually saving money by renting! Who knew?
Now, imagine your home develops a leak and needs a roof replacement. Or even worse, your home floods. If you were a homeowner, the cost of these repairs land on you- whether you’re prepared for it or not. And if you were staying for a few years, the costs of these repairs might feel overwhelming. On the other hand, renters would only have to pay their agreeable monthly rate, and the landlord is held responsible for the cost of repairs!
These are just a few of the advantages of renting your home over buying! Remember to consider your upcoming goals and plans when making a big decision like renting or buying a home. Of course, we suggest talking with a local realtor that knows the area well, and can help decipher what option is truly best for you.