Buying vs Renting? What is Beter For You?
Homeownership is the American Dream, right? Buying VS renting is a big decision that can benefit you, in the long run, if you have the right goals. Owning a place to call home, being able to paint the walls purple if you like, that’s what everyone wants. Isn’t it? The reality is there are pros and cons to buying a house. Understanding them can help you make the best decision for your goals.
Pros for Buying
This might seem obvious, but there are 3 main reasons to buy a home.
- Financial Advantages – A home is an asset that should appreciate over time, providing wealth-building opportunities. Even if you move you can rent your home to someone else and turn it into income.
- Pride of Ownership – As a homeowner, you control the environment in which you live. If you want those purple walls or granite countertops you can do it. If you want to tear down a wall to make an open space you can!
- Roots – Regardless of whether you have children, there is a natural desire to be part of a community: to have a local coffee shop, dry cleaners, bar. A game plan on how to survive a disaster.
Cons for Buying
As with all things, there are considerations which mean this isn’t the right time to buy a home.
- Increased Monthly Costs – While not always the case, in most instances your monthly utilities and upkeep will be larger than comparable rent.
- Freedom – A renter can move from one city or state to another very easily which allows you to move when you need or want to.
- Upkeep – You are responsible for the repairs and upkeep of the property. Unexpected problems can become quite expensive if you are unprepared.
There are some wonderful reasons for buying VS Renting a home; before you decide that it’s time to buy, give some thought to your lifestyle and goals if they are in line with the advantages of homeownership, then it’s time to go house hunting.