Should you rent or buy? Before you decide, let's look at the pros and cons

Are you wondering whether it’s best for you to buy or rent your next home?  The choice to buy or rent is one that will affect your lifestyle, financial well-being and personal goals.   Renting a property has more flexibility and less responsibility. Owning your home gives you an investment. But owning a home isn’t always better than renting, and renting is not always as simple as it seems. Here are some of the major differences to consider when choosing to buy vs rent.

Buying a Home

Buying a home can be a big commitment, but it can also be rewarding. There’s a sense of pride along with the ability to profit financially from growing a real estate asset. Let’s look at the other pros and cons of buying a home. 

The pros of buying a home include: 

• Building Equity: Owning can build equity over time and help grow your overall wealth.
• Consistent Payments: Buying your home brings regular monthly payments that won’t suddenly increase as the market grows.
• Control of Your Environment: You’ll have more control over your living situation. There is no one to stop you from painting the walls, changing out the appliances or even having pets. 
• Tax Benefits: You might receive tax benefits from buying or selling a home, depending on your personal financial situation. 
• Stability:  You are more likely to stay in one place for longer. Your family can create more stability in the community you live

The cons of buying a home include: 

• Responsibility: Buying means you are responsible for the maintenance of your home from lawn mowing to replacing the furnace.
• Large Financial Investment: Typically, you’ll have to provide a large down payment upfront.
• Limited Flexibility: It’s more challenging to move across town or to a new geographic location because you have to sell your home.
• Property Taxes: You’ll have to pay property taxes on your home every year and they may increase over time.

Renting a Home

Renting gives you a lot more flexibility, but there is a risk of  increasing rent costs when your lease term ends. Now let’s take a look at the other pros and cons of renting a home. 

The pros of renting a home include: 

• Short-term Savings: In the short term, renting is less expensive than buying because you don’t have to come up with a large down payment or lump sum to purchase.
• Moving Flexibility: You have much more flexibility with changing the home and moving around. This is great for individuals not set on living in the same place for years to come. 
• Builds Credit: Renting can build your credit if it isn’t yet strong enough to buy, or at least provide credit references if you’re a good renter.
• Less Responsibility: When you rent, you aren’t responsible for maintenance. Instead, you can call your landlord and have them fix any issues that pop up. 
• No Property Taxes: You won’t have to pay property taxes if you’re renting.

The cons of renting a home include: 

• Inconsistent Costs: Your monthly housing costs aren’t stable over time. Lease lengths can be month to month or fixed length. The landlord might raise the rent at those intervals.
• No Equity: You aren’t building equity. Your landlord receives the equity out of the home
• Competition: Trying to find an apartment in competitive areas, especially if you’re trying to keep your kids in the same schools, can be challenging.
• Uncertainty: There’s a chance you might have to relocate quickly if the property is sold or your lease isn’t renewed. You may also end up with a different landlord as a result of a sale. 
• No Control: Want to paint a wall? You’ll have to run any changes you want to make by your landlord.

So, which is better for you? It depends on your circumstances. If you have a stable job and income and like the idea of staying in one place for several years, buying a home could be the right choice. On the other hand, if you’re not ready to settle down or want the flexibility to move at a moment’s notice, renting might be the better option.   Give yourself time to go through the options, conduct research, and get to know yourself and your life goals.