It’s a question many are asking today. Should I buy or rent? As much as we wish it were simple—and we could tell you what to do, the answer is different for everyone. Renting a home has pros and cons, just like buying a house. You can’t take a one-size-fits-all approach to answer this. Not only do you need to consider your lifestyle, age, work situation, location, and, most importantly, if you’re ready to buy—you also want to look at the current housing market. In a seller's market buyers can feel the need to make quick decisions without having time to consider options and look at other houses, and sometimes might still miss out. So, let’s take a look at the advantages and disadvantages of buying a home or renting to help you make a decision that’s right for you.

Renting a home has sometimes been considered “throwing away your money.” The truth is, renting can actually be a good way to save up money for a down payment so when you’re ready to purchase a home you have some finances tucked away. When you rent, you are limited on what changes you can make to the home. Want to knock down a wall and open up the kitchen? Your landlord probably wouldn’t appreciate that very much. You also never know when your landlord might decide to sell the property. While there are laws that protect you, finding out that you have to move when you aren’t expecting to is still a big shock. However, your landlord is also responsible for major repairs. Did your hot water heater break? You won’t have to pay to fix it. They also have to pay taxes, HOA fees, and other expenses. These costs are normally rolled into your rent so they’re not paying out of pocket, but they are one less thing you need to worry about. Something renters have seen recently is rising rent costs. As taxes, repairs, and fees increase so does the rent landlords are charging. So, if you don’t want something as permanent as buying a home renting is a great option for you.

When you own a home it’s yours. Don’t like the color of the walls? You can paint them whatever color you want. Want hardwood instead of carpet? You can change the flooring as often as you like. You have total control over what you do with your home. You do have to keep in mind if you purchase a house in an HOA-managed community, you may be restricted on colors you can use on the outside of your home, but buying in an HOA neighborhood is a decision you can make on your own. Owning a home does come with extra expenses and responsibilities. Remember the water heater that broke in your rental? It’s now your responsibility to fix it. You also have to provide a down payment and pay closing costs, taxes, insurance, and other fees associated with purchasing a home. 

There is good news! When you buy a house you are making an investment. As you make improvements to the property it could increase the value of your home. Since you own the home, any appreciation in value (the equity) is yours, meaning when you sell you can take the equity as profit.

There are other factors that play into purchasing a home or renting. You need to qualify for a mortgage, and your credit score can be checked for renting as well. The state of the housing market and the availability of houses can also play a role in determining if you will rent or buy a house. If you are thinking about purchasing a home, reach out to us today. Our knowledgeable real estate professionals will help you answer any questions and navigate through the home-buying process.