Is buying a home always better than renting a home? The truth is, there are pros & cons to both buying and renting your next home, and a lot of variables to consider.
If you’re in the market for a new place to live, only you can determine what is important to you, and your budget. Our lists below will give you a good starting point on what you need to think about before making a decision:
BUYING A HOME: The Pros
– Your payments build equity as your home increases in value. It’s like putting away savings every month just for living there!
– The equity your home creates could be used towards a newer, larger home in the future, making it easier for upward movement in the market.
– There is a comfortable stability with owning a home. You’ll never be forced to leave as it is truly YOUR place and you can stay indefinitely!
– You are in charge and can make renovations or changes to the home whenever you feel like it.
– May even work out to be cheaper than renting.
BUYING A HOME: The Cons
– You may need a sizeable down payment saved up to purchase a home.
– You will have other monthly costs with home ownership, such as property taxes, possibly condo fees, etc.
– You are responsible for all the home’s maintenance and upkeep.
RENTING A HOME: The Pros
– You have the freedom to move when you want (within the confines of your lease).
– You are not always responsible for the maintenance of the property.
– Some expenses might be paid by your landlord (eg. condo fees).
– The ability to put your money into other investments that yield better returns.
– Allows you time to work on building or improving your credit.
RENTING A HOME: The Cons
– Your monthly rent could keep increasing year after year.
– There’s no equity being built each month with your rent payments, so when you leave, you have nothing to show for all of the rent you’ve paid out.
– There may be less stability with how long you can live there, and more rules to follow from your landlord.
Whatever your choose, it’s got to be the right decision for you and your family. There’s no “right” or “wrong” answer when it comes to buying or renting a home. As always, we are here to help guide you on whichever path you choose! Our team of REALTORS® can help find you your next home to buy, or your next home to lease. Give us a call!