Renting Vs. Buying

There are pros and cons to any decision. When it comes to the home you live in, let’s talk about each side of the rent vs buy debate!

We have been in the real estate game for some time. Jeff is currently the managing broker at the firm, and has dealt in home sales and rentals alike. We understand that it’s not always the right move to purchase a home. For some people, buying a house is either not in the cards, or not in their best interest.

Benefits of Renting:

• Virtually no maintenance cost

  • When you rent a home, the cost of maintenance falls on the home owner. That means no surprise bills for large repairs.

• Flexibility

  • Since a lease is generally a year or less, you have the option to move to a different area, downsize or upgrade your home, or find a home with more/different amenities as often as you like. If you choose a home and decide that it isn’t a great fit for you, you have the flexibility to change much more easily than if you owned the home.

• Lower insurance costs

  • While homeowners have to maintain homeowners insurance, the renters equivalent is much lower in cost. The average renters insurance is less than $20 per month. In contrast, the average homeowner pays over $1200 per year for their insurance.

Benefits of Buying:

• Set payments

  • While rent payments may change every year with a new lease, your mortgage payments are set. Unless you refinance, you will know what your monthly payments will be for the next 15-30 years, making it much easier to set and maintain your household budget.

• You can make the house your own

  • Unlike a rental property, you have free reign to make any changes that you may see fit in your home. Don’t love the flooring? Change it! Want to add energy efficient upgrades? Do it! Think you could use a more open concept? Break down some walls! The possibilities are virtually endless.

• You get to build equity

  • This might be the most important benefit to owning a home vs renting. When you own your home, all of the increased value in your home is yours to keep. As real estate continues to outpace inflation year over year, it remains one of the most stable investments in the country. Instead of lining your landlords pocket, you will be building your own wealth in the form of equity.