It is a widely debated topic… buying vs. renting. Here are a few reasons why you would want to choose to buy over renting or inversely. Everyone has different needs and a solution is not one-size-fits-all!

 

BUYING PROS

Buying a house comes with many benefits, the biggest one being that once you’re done paying it off, it’s yours! Every time you make a payment towards your mortgage, you get closer to owning the property. When you pay rent, that money belongs to the owner. Poof. Gone. No longer yours. You’re paying someone else’s mortgage.

It’s an investment. Your property will appreciate in the market if it is well taken care of. If you purchase a home today for $200,000 could be worth and sold for $260,000 in a few years. Once you’re done paying off the property, it’s yours! This can be substantially less than renting since you no longer must worry about that monthly payment (you will still have other expenses like homeowner’s insurance). If you have a family and want to leave them the property in your will, that is leaving your family an asset for the future.

You can do as you please. When renting there are usually rules about painting the walls or putting up paintings. With your own property you can paint your house bubblegum pink if it’s what makes you happy! The renovations don’t have to be approved by another landlord, because you’re your own landlord! (You might need to get it approved by the state too if you’re making certain changes.) You can get pets as you please without extra fees or build a nursery if you need one.

There are tax advantages to owning property because many of the costs are tax deductible.

You can take out an equity line if you fall on hard times. Unlike a rental, a property you own holds value which you can use as a loan when necessary. It’s kind of like a safety net and it’s also kind of like a forced savings.

Your payments won’t go up. Rent can be increased whenever a landlord wants depending on the contract, but with a mortgage you know exactly how much you’re paying every month and year.

 

RENTING PROS

There are pros to renting as well. The biggest being that you are not in charge of your own maintenance costs.

Renting gives you more mobility since you are not tied to a mortgage. Sometimes selling a property is not easy depending on the climate of the market, so you might not be able to get out of it as quickly as you can with a rental.

 

 

Want to buy but don’t think you’re ready? We can help you figure out if you’re in a good position to buy or if you should continue renting. We can also help if you are looking to refinance or tap into your line of equity. If you have any questions, please feel free to ask!