Reasons To Rent
- Credit Score – If your credit score is not high enough to obtain a mortgage, you can build up your credit score while you rent.
- Less Maintenance – One of the perks of renting is that you have less maintenance expenses. In most cases all you need is to call your landlord and the problem will be fixed!
- Uncertainty – If you are uncertain how long you will be living in a certain area or are unclear of what your next job move is going to look like, it might be better to rent.
- Explore – Renting allows you to explore different areas before committing to buying.
Reasons To Buy
- Equity – When you own a home you are investing in a piece of property that allows you to build equity. With every payment you are building equity which you can use to borrow against if you choose.
- Investment – Whether you are flipping a home or buying it move-in ready, you are buying an investment that you could potentially make money from. If you buy the right house at the right price and depending on the market, length of time you stay in the home, you can potentially develop a pretty decent investment.
- Taxes – Ever heard of this one? You can deduct mortgage interest as well as your property taxes. Ask your real estate agent if you are eligible for any additional deductions.
Which is cheaper?
This is a common question from those looking to buy a home and are currently renting. The true answer is that it depends. It depends on how long you plan on staying in your home, what interest rate you get, and more. Sometimes renting is a cheaper option but sometimes buying is. Of course when you own a home you are responsible for repairing anything that goes wrong and if you are renting the landlord takes care of it. There are perks to owning a home that do not come with renting as well.
Start talking with your real estate agent and get estimates from your lender. If you know the current real estate market and can compare what a mortgage would be to what you are renting, that can be a great place to start.
What do you think? Is renting better than buying? Are you glad you stayed renting or are you glad you bought your home? Comment below!