Renting vs Buying a Home HTML view Note
October 28, 2019
In recent years, the decision to either rent or purchase a home has become something of a rite of passage for many people. As property values skyrocket and traditional notions of homeownership are adapted to a changing economy, more and more millennials are opting to forego a mortgage in favor of renting property. For other people, however, the purchase of a home just makes good financial sense.
While there are certainly benefits and costs associated with either choice, there are a few tried-and-true methods for determining which mode of living is right for you. Here are just a few great ways to choose whether to buy or rent a home in the near future.
1. Weighing Long-Term Costs
If the decision to purchase a home simply came down to the cost of a mortgage payment, buying a house would be a no-brainer. In reality, a mortgage payment will often be the least of a homeowner’s worries in the long run. In a rental home, for example, tenants will not be responsible for the cost of repairs, upkeep, or property taxes. Once a person owns a house, however, they are on the hook for all sorts of new expenses.
In a rental home, in other words, an individual will usually have a realistic idea of what they’ll need to set aside each month to cover their living costs. In contrast, homeowners will need to set aside a certain amount of money to cover any repair bills that may arise as a house ages.
2. Looking at the Long-Term Benefits
While renters will avoid the financial risks associated with owning a property, they will not stand to gain from the long-term rewards that homeownership can provide. For example, a couple that has paid off their house in its entirety will be able to live rent free throughout their retirement. In a hot housing market, homeowners also have the advantage of being able to sell a property at a profit. That money can be used to purchase a bigger house or retire early. In many ways, the purchase of a property can be one of the best investments that a person can make.
3. Personalizing a Property
In a rental property, individuals may also chafe at the difficulties involved in renovating their surroundings to match their personal tastes. Unless they’ve been green-lighted for a redesign of their living quarters, tenants will usually have to deal with whatever carpets or color schemes a landlord has chosen for a property. For people who like to personalize their own space, buying a house or condo can definitely have distinct advantages over renting.
While the decision to purchase or rent a home remains a deeply personal choice, there are benefits and costs associated with either path forward. Fortunately, a positive attitude and a serious consideration of personal preferences can make the process of choosing to buy or rent a home easier. Above all else, enjoy the journey involved in creating a living situation that is right for you!