When you’re trying to decide whether to rent or buy a home, there are a lot of factors to consider. Do you want the freedom to decorate however you want? Are you looking for a long-term investment? Or maybe you just need a place to call home for a few years.
To offer a fresh perspective, we’ve laid out the pros and cons of renting vs. owning a home. Use this information to figure out what’s right for you and start living your best life!
Renting an Apartment – Pros:
- You’re not responsible for maintenance or repairs. If something breaks, it’s up to your landlord to fix it.
- Rent is sometimes cheaper than a mortgage payment, leaving you with more money in your pocket each month.
- You can move whenever you want without having to go through the hassle (and expense) of selling your home.
Renting an Apartment – Cons:
- You’re never going to build equity by paying someone else’s mortgage.
- Landlords can raise the rent anytime, leaving you struggling to make ends meet.
- You may be restricted in decorating or making changes to the unit, meaning you’ll never really feel at home.
Owning a Home – Pros:
- Each monthly mortgage payment brings you one step closer to owning your home outright.
- Once you own your home, your monthly housing payments are fixed, so you’ll never have to worry about rent increases.
- Making renovations and improvements to your home can add value over time. And if you ever do want to move, those changes will pay off handsomely.
Owning a Home – Cons:
- Unlike landlords, homeowners are responsible for all maintenance and repairs, which can be expensive.
- If you need or want to move before the end of your mortgage term, you may have difficulty selling your home or may have to sell it for less than it’s worth.
Some Home Ownership Myths
Plenty of websites tout putting 20% down of the purchase price as a solid Con to home ownership. But unless it’s not an investment property, the down payment doesn’t require 20%. The minimum requirement is usually 5% for a conventional loan and 3.5% for FHA. VA loans are even 0% down. And, what’s expensive to some may not be expensive to others, so the challenges of running a house are very subjective. One thing, however, is certain. Throwing money into a rental could be much more expensive. However, paying for your own house is much better than paying off a landlord’s house.
When it comes right down to it, there is no clear answer as to whether renting or owning a home is better. It all depends on your individual circumstances and what’s important to you. When you’re ready to get serious about owning a home, there’s no greater ally than Mister Frisco, Viktor Taushanov, and Globus Realty.
