Pros and Cons of Renting vs Buying

Pros and Cons of Renting vs Buying

 

Which Choice is Right for You?

When it comes to deciding between buying a home or renting a home, it can seem like a hard and overwhelming choice at first glance. Both of these options have their advantages and disadvantages, so it is important to look at all of the possible outcomes to make sure that your final decision is right for you and your needs. Check out these pros and cons for buying versus renting!

Pros for Renting a Home

When you rent a property, you are given more flexibility than you would if you were owning a home. This is great for people who suddenly have to leave due to a big life change (i.e. job relocation, military, etc.), or for those who don’t plan on staying in one area for a long period of time. Moving out tends to be a lot easier for those who rent since there is no stress to find someone to take your place and no community obligations to tie you down for longer than you expect to be in the area. The only insurance a renter/tenant requires is enough to cover the contents of the property (whereas maintenance work is done on the homeowner’s insurance). Therefore, renting can become a cheaper option in the long run, especially if you are only staying in the area for a month or so at a time!

Cons for Renting a Home

If you decide to rent, it is important to note that there is no tax break, meaning you won’t be able to claim deductions on mortgage interests or property taxes when you file your tax returns. Another downside to this option is that your rent is never a fixed amount, and it can grow from year to year (depending on the company and inflation). When you rent a place from a landlord or homeowner, you are also bound by rules of a lease. This can limit your freedom to use certain items or rooms in the house, as well as rearranging or renovating your space. If you want to make any changes, you would have to consult with the homeowner first. There are also times where you may have to deal with rental agents (people who act as a liaison between you and the homeowner). This could mean having issues taking a longer amount of time to be resolved. Lastly, there is never a guarantee that your lease will be renewed when it expires, so you will have to have a backup plan just in case you aren’t able to stay for another lease.

Pros of Buying a Home

Owning a home is great if you want long-term benefits, such as security, equity, growth in personal wealth, and much more! Since the value of a home appreciates over time, you can earn a profit on the sale if you decide to sell your home at any given time. It also becomes your legal property once you buy it, so you have more freedom to alter your property (whether it be new landscaping, renovations, remodeling, etc.) to suit your own unique style and comfort level. You can also buy a house to rent, which will ultimately help increase your monthly income as well as help you pay off your mortgage quickly. If you make payments on time, you will also improve your credit profile significantly. Having your own home also gives you the option to refinance your bond amount. If you choose to withdraw a large amount of money to pay for something more luxurious, this is a great reason to buy a home! Most importantly, it will help you save money since there are possible tax deductions for your property. With buying a home, you have more privacy, peace of mind, pride in owning a home in your community, and predictable costs! If you’re thinking of buying a home and aren’t sure whether you want new construction or resale, click here and read our blog about the pros and cons of each choice!

Cons of Buying a Home

Although it may not sound like a bad thing, a home is a long-term commitment, meaning you are now financially responsible for your new home for as long as you decide to live there. This also means that you are responsible for all maintenance that will need to be completed (which can range from inexpensive repairs like fixing a leak or broken toilet to more expensive repairs like replacing a furnace or air conditioning system). Buying a home also means connecting with your community, making it more difficult if you have to suddenly relocate to a different area. If you decide to buy a home, you will also need money for a down payment, closing costs, and any moving expenses.

As you can see, renting or buying a home is a big commitment, regardless of which route you choose to go down. Renting is for staying in one place for a short period of time, whereas buying your own home gives you the option to stay a lot longer and build relationships with people in your community. Renting can give you less freedom to do what you want to the place. However, buying a home can also be frustrating if there are a lot of repairs that need to be taken care of on a regular basis. If you are currently renting a home and decide that you would like to buy a home and start paying your own mortgage rather than paying for your landlord’s mortgage, give Accel Realty Partners a call! Click here if you want some inside information on the current real estate market in the Treasure Valley!

 

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