BUY VS RENT
Looking to move but unsure whether to buy or rent? Both solutions afford you a place to live and require a steady income. Which option is best for you depends on some personal lifestyle values and goals.
FLEXIBILITY VS STABILITY
If you value flexibility, renting might be a better option for you. For better or worse, you can move out without penalty when your lease ends whereas with homeownership you are tied down to your property. Additionally, you can always resign from your lease! People who don’t want to feel bound to a specific location might prefer this option. But there are several differences that make renting and owning property distinctly different. Owning your home gives you a sizeable investment, but it does come at a big cost—both upfront and over the long run.
On the other hand, home ownership comes with an element of stability. The property isn’t going anywhere, and neither are the costs of owning your home. So, while the prices might change, there will always be expenses. This stability can also come with a sense of community and ownership pride while also having a heftier level of responsibility. As a renter, you may face rent increases each time your lease is up for renewal. These rent increases can be even steeper if you live in certain parts of town
Rent comes with predictable monthly payments that only sometimes fluctuate based on what utilities are or aren’t covered by the landlord. As a result, renters do not have to worry about several of the expenses that homeowners do, like property taxes, trash pickup, pest control, etc. However, predictability only goes so far. For example, there is always a possibility that the landlord might raise prices or decide to sell the property.
Owning a home comes with a plethora of predictable expenses that require financial leverage. These include mortgage payments, responsibility for repairs, tax deductions, equity, etc. A significant driver of ownership is the possibility of building wealth in the long run. However, this isn’t guaranteed, as the market can be very unpredictable. Owners are subject to the possibility of either making or losing money.
Like most things, renting and buying each come with their own list of pros and cons. Whichever route you decide to pursue, I would be happy to help! Give me a call.