Renting vs. Buying
There are a number of things to consider before taking this step. In some cases, renting may be a more viable option. Here are some of the pros and cons of each idea.
Benefits of renting
- The initial cost of renting, whether an apartment or a house, is low. Instead of a big down payment and high monthly mortgage, the money can be invested into a savings account. That way it can be used for the eventual purchase of a home.
- Renters are generally off the hook when it comes to repairs and maintenance. That’s depending on the rental agreement signed beforehand. Many times the landlord will handle mowing, snow removal, painting and any repairs that are necessary. This too can be a time and money saver for the renter.
- Insurance costs are lower. When a renter gets insurance, it’s for the items they own, not the actual house or apartment.
- Before renting, know the laws in your state. Make sure you’re up to speed on the expectations of the landlord in terms of what you can and cannot do with the property. Some have strict no smoking and no pet policies. Violators may end up losing their security deposit.
Benefits of buying
- Crunch the numbers, because in some cases a mortgage may actually be less than rent.
- Buyers have control over their property. If you don’t like the landscaping you can change it how you want. You can add or remove things from the home without having to get prior approval. There’s a sense of freedom involved in home ownership.
- Even though you’re paying property and real estate, these expenses along with interest can be tax deductible as well.
- Unless you live in an area with a neighborhood association, there are few rules and regulations to follow. You can have pets, visitors and as many kids in your home as you wish.
These are just a few of the things to consider when making the decision to buy or rent. If you’re looking for a way to crunch the numbers and know what’s the best option for you, check out this mortgage calculator.