Buying vs Renting: The Pros and Cons to Both

When it comes to deciding whether to buy or rent a home, there are many factors to consider. Both options come with their own set of pros and cons, and it’s important to weigh them carefully before making a decision that is right for you!

Some things to think about: are you looking for something long or short term, do you have pets, do you have more money upfront or looking to spend less, and what do your overall long term goals look like?

Pros of buying a home:

  1. Building equity: Buying a home is a long-term investment that allows you to gain equity over time, which can help you build your financial future.
  2. Control over the property: As a homeowner, you have the ability to make changes to your property, such as remodeling or landscaping, without having to ask for permission from a landlord. Although some communities require you to follow HOA guidelines, you still have way more control over your options than a rental.
  3. Stability: Owning a home can provide stability and security, especially if you plan to stay in the same area for a long time.

Cons of buying a home:

  1. High upfront costs: The down payment, closing costs, and other fees associated with buying a home can be significant. Lenders do have different options to help counter the high costs, so it is always good to check in with one to see what might be available that you may not have known about.
  2. Maintenance and repairs: As a homeowner, you’re responsible for maintaining and repairing your property, which can be costly and time-consuming.
  3. Less flexibility: If you need or want to move for work or personal reasons, selling a home can be a lengthy and expensive process.

Pros of renting a home:

  1. Less upfront costs: Renting usually only requires an application fee and some sort of security deposit. These tend to be much lower than the costs associated with buying a home.
  2. Maintenance and repairs: As a renter, you are usually not required to maintain things like water heaters, AC units and so forth. If these items were to have issues or go out, your landlord is responsible. Always be sure to read your lease to ensure the details.
  3. Flexibility: It is much easier to move around quickly and frequently when you are tied to a lease rather than a mortgage. If you enjoy hopping around from place to place or just aren’t sure yet where you want to be, renting can be a great short term solution.

Cons of renting a home:

  1. No equity: You are paying the landlord for the use of their property, so they continue to build the equity rather than you would if you were the owner.
  2. No control: You have very strict limitations on what can and can’t be done to the property. Usually little to no changes are allowed and some even carry rules on what can be used to hang items on the walls.
  3. Less stable: Although not always the case, renting tends to be a better short term option than a long term option. Leases continue to increase their rent each year which may cause you to want to move apartments/locations after each lease.

Think about what you are looking for in your next home and what fits your lifestyle best. The decision will come to you!