When you’re thinking about moving into a new place, a big question will always appear: should you rent or buy a home? This can be an overwhelming process, so it’s important you know about the key differences between renting and owning. Both have their pros and cons. This article will go over the basics of both renting and owning, and help you decide which is the right choice for you.
Renting vs. Buying: An Overview
No matter which option you go with, the biggest factor in making a decision between renting and buying comes down to your finances. No surprise there. You’ll need to prove that you earn a stable income for either situation, as there will be upfront payments for renting and buying.
Pros and Cons
The biggest advantage to renting is that it doesn’t come with all the responsibilities that owning does. As a renter, you’ll have more flexibility because you’re not fully responsible for the entire property. Owning, however, comes with its own advantages. Although it can be significantly more expensive upfront, owners are making an investment in the property.
Renting
The biggest advantage to renting is that you’re not tied down to a place forever and your landlord is there to assist you. You’ll know exactly what you owe in rent each month by signing a lease for the property. Sometimes renters even get their utilities paid for by the landlord.
Even though you have more mobility as a renter, there are some unpredictable things that could affect you more. For example, if the landlord sells the property or converts the units into condominiums, you may need to scramble to make other living arrangements.
Owning
Homeowners have much more creative control of their residence than renters. They get to create the interior design and overall feel of the physical space. There’s a different set of responsibilities for owners, though. Let’s go through some of them.
The overall cost of homeownership is usually more than renting. This is true even if the mortgage payment is less than a monthly rent check. That’s because homeowners need to take care of the monthly upkeep.
Some common examples of monthly upkeep costs are property taxes, water and sewer service, trash pick up, tree trimming, pest control, and other homeowners insurance costs.
It’s Up To You
Looking for a place to live can feel stressful because there are lots of decisions to make. If you’re weighing the options between renting and owning a home, then you should consider the pros and cons we went over in this article. Both renting and owning have their pluses and minuses, so now it’s your turn to decide which option best fits your situation.
