For many people there comes a time where they must ask themselves what is best for me financially, continuing to rent or is it time to buy a home?
However, rates are now higher and housing prices are also at historical highs, Many people who can't afford the inflated rates and prices have opted to delay and wait on the market. Additionally, rent too is not cheap, especially in popular housing areas. This is the dilemma many people are faced with debating.
Hopefully these things can assist you with advantages and disadvantages, in order for you to make the best decision for renting or buying a home.
If this is your circumstance our team advises you to please read though some of our notes we have made and please give us a call or email you to talk further to assist you in making the best option that makes sense for you. It can be complicated and we are the experts to make sense out of the numbers and process to alleviate that stress for you.
Buying a Home
Pros
- Builds equity
- Builds credit
- Stability (not having to worry about a lease renewal)
- No landlords
- Potential tax benefits
- Ability to improve your living environment to your preference
Cons
- Large upfront investment
- If home prices decline you could lose money
- Expenses beyond mortgage payments
- Rising home prices
- Responsible for the cost of repairs and maintenance
Renting
Pros
- Fewer upfront costs and paperwork
- Flexibility to be more mobile
- Not responsible for maintenance or repairs
- No worry for falling home prices
- Builds credit (if landlord reports rent payments to the credit bureaus)
- No property taxes
Cons
- Landlord can increase rent
- Might need to relocate on short notice if landlord decides to sell
- Builds equity for the landlord, not for you
- Limited space and competitive rental markets
- No tax benefits
- Less personal choice in colors, size, layouts, and appliances