Before planning your next home, ask yourself a question: should I buy or rent? Home ownership is a proud milestone many are actively working towards. If you're not in the right financial position to purchase, renting can be an equally viable option.
Ultimately, there are many factors to consider before deciding to buy or rent. Here are just a few that might help you make the decision that’s best for your family.
Advantages of Buying
Owning a house is an investment. Each payment you make builds equity into a valuable asset.
With a fixed-rate mortgage, your payments will be more predictable and won’t rise over time like rent.
As a homeowner, you have complete control over the property. Renovate and redecorate to your heart’s content!
Living in a house offers greater privacy than apartment living.
As the market fluctuates, your home's value could potentially go up.
Disadvantages of Buying
Buying a house could require a large investment up front.
Owning a house is a long-term financial commitment. If you’re not planning to stay for more than a few years, you’re likely to lose money.
You’ll likely end up paying more than just your mortgage each month. Taxes, insurance, and potential homeowner fees can leave your budget gasping for air if you’re not prepared.
You’re responsible for much more as a homeowner, including all maintenance and home improvement projects your house may require.
As the market fluctuates, your home could potentially go down in value.
Advantages of Renting
When you rent an apartment, condo, or other living space, rent – which can include utilities – is often the only recurring monthly payment to worry about.
Move-in costs are less expensive.
Renting offers a lot of flexibility as leases are usually relatively short-term. As a renter, you could feasibly move every year if you desired.
Your landlord is responsible for nearly every maintenance and repair project the home needs, not you.
Disadvantages of Renting
Rent payments can gradually increase over the years.
Unlike mortgage payments, your monthly rent isn’t helping you build equity in an asset you own. Instead, it’s just going to your landlord.
When you rent, you have much less freedom to alter your home beyond simple decorations.
Rentals, especially apartments and condos, can come with many restrictions, like limits on pets.