Buying a house is a big decision that you want to be as prepared for as possible. We’ve tried to take some of the pressure off with a list of the top pros and cons of buying a house versus renting. Take a look to see what is the right next step for you.
Owning A Home
PROS
- Investment: When you purchase a home rather than renting, it becomes an investment. Instead of making a monthly payment to a landlord on a property that will never be yours, you will eventually own the property and may choose to someday sell it for a profit. According to Money Crashers, your home generally appreciates in value 4% to 6% each year.
- Remodel/Decor: When renting, some landlords will limit what you can do to the home. In some cases, they prohibit you from hanging things on the wall with nails. If you want to remodel or paint a room? Gotta clear it with your landlord first. When you buy a home, you’re free to customize it and decorate it however you desire.
CONS
- Repairs: Unlike renting, you cannot count on your monthly mortgage payment to be your only expense. Things will break, storms may come, and repairs will be the reality of owning a house.
- Housing Market: Though the hope is that you will be able to sell your home for more than the purchasing price, this is not always the case in today’s market. Much of it depends on how soon you plan to turn around and sell the home after buying.
Renting A Home
PROS
- Repairs: As long as you didn’t do the damage and you have a responsible landlord, the stress of repairs is entirely off your shoulders. Getting your leaky faucet or squeaky door fixed just takes a phone call and none of your money.
- Moving: If you are at a stage in your life and career that means moving every few years, renting gives you much more flexibility and less stress when packing up.
CONS
- No Equity: Each monthly rent check simply leaves your pocket rather than building up equity towards an asset you can someday sell.
- No Changes: This is largely dependent on your landlord, but you don’t have the freedom to paint or change the apartment or house without their approval.
If the pros of buying outway any cons for you, but you don’t know how to get started, take a look at McArthur Homes’ homebuyer tools to walk you through it all.
