Renting Vs. Buying: What's Best For You?

The choice between renting or buying a home has been an ongoing debate with the pro-buying party asking, ‘Why pay rent to a landlord when you can build equity in a home?’ However, we can not ignore that buying a home is not a walk in the park. You not only have to consider your financial position, but your social and professional life has to be in order too. Therefore, the pro-renting side argues that buying is expensive and risky while renting offers flexibility and minimal responsibility. 

Clearly, both parties have valid reasoning indicating that numerous factors come into play when deciding whether to rent or buy your home. 

Renting

Financially, rent money feels expensive because it's cash you will never get back. However, this is misguided reasoning because you are purchasing the safety of having a home. Also, in comparison to buying a home, there are costs like interest, taxes, and other fees that make up non-refundable payments. The bottom line is if you need a home, that will cost money one way or another.

Pros of Renting

• Fixed and formulated housing costs

• Fewer expenses in comparison to owning a home

Cons of Renting

• Rent could increase in the future

• The landlord could also choose to sell the property, forcing you to move

Owning

Buying a home involves a major financial commitment. If the monthly mortgage payment is the same or lower than the monthly rent, the general cost of buying a home is higher than the overall cost of renting. This is because mortgage payments are just part of the overall expenses of becoming a homeowner. 

Pros of Buying a Home

• You have a more permanent living space

• Better resale prospects as the value of your home could go up with time

• Your mortgage payments help build equity

• More control in designing your home as you wish 

Cons of Buying a Home

• Changes in your financial situation or the economy can result in you losing your home or the house losing its value

Which is Better: Renting or Buying?

It all boils down to where you stand financially and what your long-term plans are for the future. Both renting and owning a home are viable options and only you - in your current position - can decide which is better.

When you have decided what works best for you, reach out to Daniel David at 859-797-4007 for exceptional renting and home buying solutions.