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PROS & CONS of Renting VS. Buying Your Home

November 6th, 2019 3:11 PM by Katelyn Mountjoy

There are so many living options in the world, but they basically boil down to either renting or buying. Considering Real Estate is constantly in flux and can be extremely local, there is not really a universal ‘good’ or ‘bad’ or ‘better’ choice between renting or buying. Especially when you take into consideration that every single person looking for a place to live is in a completely different stage of life. Taking these facts into play, here are some pros and cons of renting vs. buying!



 

P R O S   O F    B U Y I N G    A    H O M E

 

  • Making constant payments builds equity 
  • Tax deductions
  • Forced savings
  • Stability… in which you know this place is ‘yours’
  • Place of your own
  • You are in charge and can do whatever you please to the design 
  • You can build tons of wealth in the process without lifting a finger
  • Could potentially be cheaper than renting in some situations
  • Pride of ownership (social status, accomplishment)
  • Mortgage can improve your credit history/score
  • No more monthly payments after mortgage is paid off
  • Can rent out to others
  • It’s the American Dream!



 

 

P R O S    O F    R E N T I N G 

 

  • No real estate taxes 
  • Less maintenance 
  • Deposits made on the property are typically refundable
  • Freedom to move when you want (as long as you give notice at appropriate times)
  • Less financial responsibility 
  • Ability to invest your money into other fields that yield better returns
  • No risk of home price depreciation
  • “free” amenities such as neighborhood pool, gym, security system 



 

C O N S   O F   B U Y I N G   A   H O M E 

 

  • Many costs come quick (appliances, maintenance, upkeep)
  • More potential responsibility 
  • Harder to move in the future
  • More liability
  • Might be more expensive than renting when looking at circumstances
  • Could potentially go into a ton of debt if you don’t go about buying at the right time
  • Needs constant updates to keep value up
  • Not everyone qualifies for a mortgage
  • If in a neighborhood with HOA dues, they could potentially increase every year
  • Long-term commitment
  • Possibility of being foreclosed on

 

 



C O N S   O F   R E N T I N G 

 

  • Rental amount could increase on a regular basis
  • No wealth creation
  • No tax benefits
  • Less stability, more rules
  • You walk away with nothing after paying months and months of rent 
  • Often stuck in a lease for 12 months or longer 
  • Could be forced to move on fairly short notice if owner wants to sell or flip the property
  • Might be restrictions like no pets etc.
  • Fees of applications can add up if the market is competitive and there are a lot of applicants



With this information in mind - hopefully you are able to make the right decision for you and your family when the time comes in renting or buying your next home! Remember, you can always give Palmetto a call if you have any questions about these pros & cons or even just need Real Estate advice.

Good luck!

 

 

 

Source: https://www.thetruthaboutmortgage.com/renting-vs-buying-55-pros-and-cons/

 

Posted by Katelyn Mountjoy on November 6th, 2019 3:11 PM


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