Buying June 18, 2022

Buying Vs Renting – What’s Better?

So you’re currently renting and you’re thinking about buying a house. What are the pros & cons of buying vs. staying in your rental?

The pros of owning a house:

You get a mortgage and you know what your mortgage payments will be each month for the next 10, 15, 30 years (unless you refinance).

You build equity/wealth when you start paying your mortgage down or home prices in your areas start to go up. For example: You buy your house at $200,000 and a house that is similar in your neighborhood with similar features and finishes sells in 6 months for $225,000, you could’ve possibly made $25,000 on your investment.

Cons of owning a house:

Paying for property liability insurance

Paying for property and/or school taxes (depending on location) – taxes might go up and it’s a good idea to participate in school budget and/or municipal budget voting

Repairs & maintenance – if anything breaks, it’s on you to fix it

If you buy in a home owner’s association, they can tell you what you can and can’t do with the outside of your house or condo.

The pros of renting a property:

If you don’t want to live there anymore, you can move when your lease is coming up for renewal

If something breaks, your landlord has to fix it (depending on your lease)

Cons of renting:

You have to wait for the lease to be up to move

Landlords who don’t maintain/fix things that break

You’re not building equity/wealth

Rent can go up at the end of the leasing period

You can’t make changes to the inside or outside of the house