When it comes to finding a place to call your own, there are so many options. I want to share a few things to consider when you’re deciding whether you should rent or buy.
1. The Price of Freedom
If you’re at the point of your career where you’re relocating or haven’t made a huge life change like getting married or having kids, you might want to consider renting. It offers you more flexibility. Most leases are for a year—some can be even shorter, often for more money though—while a mortgage is typically a 15 -to- 30 year commitment.
This isn’t to say you can’t sell your house since people do it all the time, but more is involved than breaking a lease. And there’s always the possibility you’ll lose money in the process.
2. Money Matters
While it’s true your rent might seem more expensive than a mortgage when you
look at the monthly price tag; often buying a house is cheaper in the long run. As you’re
considering whether to buy or rent, don’t forget to factor in things like down payments,
security deposits, moving costs, utility costs, and having to purchase furniture.
Also, remember the monthly amount you pay for rent often covers utilities and maintenance. These are things homeowners pay out of pocket, and sometimes can come with a hefty price tag.
3. Taxing Thoughts
Homeownership allows you to build up equity and offers a lot of tax benefits,
including your property taxes being tax deductible. But, keep in mind you still have to pay real estate taxes and insurance, even after your home is paid for.
4. Ownership Has its Privileges
As a homeowner, you can do whatever you like to your space, for the most part, (many communities have homeowner associations that have rules you must follow, normally for the exterior). Also, it’s less likely you’ll have to deal with your neighbors arguing or loud music in the middle of the night in your own home.
On the other hand, many apartment communities offer onsite amenities like workout facilities, movie theaters, pools, and club houses, which many people find appealing.
The Bottom Line
At the end of the day, there’s no right or wrong answer to whether to rent or buy. All that matters is figuring out what’s right for you in this season of life. If you have questions or need assistance in weighing the pros and cons, I’m happy to help you!