The decision of whether to rent or to buy is a hotly debated topic, but the truth is that it really depends on the person and their situation. We’re here to break down the differences so that you can decide what is best for your circumstances.
Pros of Renting:
- Flexibility: Because you don’t own the property, renting offers much more flexibility if you decide to move. You also typically don’t have to worry about repairs and home maintenance, such as air conditioning problems or appliance issues.
- Predictability: Renting comes with a degree of predictability not available in ownership. Because you often don’t have to worry about repairs and rent stays the same throughout a lease, there are fewer changing expenses.
Cons of Renting:
- Changing Landlords: Sometimes landlords may raise rent after lease cycles, or they may sell properties. This can lead to changes in price that are uncontrollable for the tenant and can cause issues later on.
- Less Control: When renting, there are often limits on what you can do within the home. Whether you can paint, update old appliances, or drill into the walls are all things landlords can dictate, which can lead to your space feeling less your own.
Pros of Buying:
- Building Equity: The more equity you accumulate over the course of owning a home, the more likely you are to be able to sell the home for a profit.
- Stability: While there are more unpredictable costs associated with home ownership, you do have the stability of knowing that, as long as you make the necessary payments, you will own your home for yourself and not have to heed to someone else’s decisions about your space.
Cons of Buying:
- Repairs and $Maintenance: Because there isn’t a landlord or company managing your property, ownership means that any busted pipes or broken air conditioners have to be paid for by you. This also means that you can make more creative decisions for the home, but have a greater responsibility should something happen.
- The Housing Market: As a homeowner, your home’s value may rise and fall as the housing market changes. This means that if you want to move, you can’t simply wait for the end of a lease. Instead you have to wait for your home to sell – and if the market isn’t right for you, that may take longer or not yield as much profit as you hope.