09/22/2022
It may be somewhat of a sensitive subject right now (we’re looking at you ) 😅, but let's talk about some distinctions between vs a home.
Each option comes with financial trade-offs—plus nonfinancial, personal considerations, which can be equally important. There are advantages and disadvantages to both renting and buying.
For Renting...
Pros:
✅ No long-term commitment
✅ Landlord handles repairs and maintenance
✅ Predictable monthly payment
✅ Move when you want
Cons:
❌ No investment; no return
❌ No tax benefits
❌ Rent can increase
❌ No control over fixes, remodels, (or that weird smell in the hall)
For Buying...
Pros:
✅ Tax breaks
✅ Build equity
✅ You’re the boss of your space
✅ Put down roots
Cons:
❌ You’re responsible for all repairs and maintenance
❌ Property value can decline
❌ Buying is expensive
❌ Not easy to sell or move
How much you’ll pay is another big part of the rent vs. buy equation.
Renting usually requires:
➡️ Security deposit
➡️ Rent
➡️ Utilities
➡️ Renter’s insurance
Buying, on the other hand, usually means:
➡️ Mortgage payments
➡️ Homeowners insurance
➡️ Property taxes
➡️ Homeowners association (HOA) dues (if you live in a community with one)
➡️ All upgrades, utilities, and maintenance
As you weigh the pros and cons of renting and buying, ask yourself:
🏠Will this house fit my family in size and location for at least the next several years? Experts recommend staying in a house for at least three to five years in order to recoup closing costs.
💰Can I get approved for a loan Qualifying usually depends on your credit score, income, down payment, and other debts.
🤔Am I ready to make a big commitment? A home means more than just a financial commitment. It means you’re the one on the line if a pipe freezes in the dead of winter or the basement floods while you’re on vacation.
Are you Team Rent or Team Buy? Share below! And click our link in bio to learn more tips on this.
