Everyone's situation is different. Renting is not for everyone just as buying may not be in the cards for someone who is looking to relocate in a short time. Below is a list of pros and cons of renting vs buying!
You should decide on how long you are looking to stay within a home – renting is a great short-term option whereas home buying can be a great long term, financial investment.
Renting can be a cheaper option than buying a home due to the upfront costs involved of buying a home. Buying includes a down payment, closing costs, moving costs, and any renovations or home improvement costs.
Mortgage also includes extra costs – property taxes, homeowners insurance, mortgage insurance, and HOA fees.
Look at your life and see if your current situation will be changing soon. If so, buying may not be for you.
For example – If you are newly engaged and thinking of moving in with your future spouse, renting short term could be a good option. If you are looking to expand your family but not sure when and don’t want to rush into anything expensive, you can rent short term. Renting could be the best option for these scenarios being that your situation is going to be changing within the next few years.
Most homeowners gain home value over time, but you always take the risk of your local real estate market taking a negative turn. There are also a lot more maintenance risks that you must plan for – including changing air filters, testing fire alarms, landscaping, plumbing, etc.
Renting means you won’t have the opportunity to build equity like you would with buying. Your rent could go up at any given moment. Your landlord also has the ability to ask you to move out or cause delays when it comes to maintenance issues.
You always need to be realistic about your financial situation when deciding between renting and buying. If you can afford the upfront costs, such as down payment, closing costs, moving costs, repairs, buying new furniture, etc., then you are in a good financial position to buy a home.
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