Renting vs. Buying a Home - Which Is Right for You?

  • Posted on: 10/14/2020
Renting vs. Buying a Home - Which Is Right for You?

To rent or buy? That is the BIG question. Don’t worry, we’re here to help!

Before making this commitment, it is important to review all of the pros and cons of becoming a homeowner. Review the list below to help you determine whether it is the right time for you both personally and financially to make the jump from renter to homeowner.

Pros of Renting:

Cons of Renting:

Lower housing costs

No tax incentives

Shorter-term commitment

No fixed housing costs

No, or minimal, maintenance costs

Cannot build equity

Relocation is easier

Must answer to a property owner

Utilities may be included with the property

Cannot personalize your space

 

No long-term stability

Pros of Buying:

Cons of Buying:

Privacy

Long-term commitment

Typically a good investment

Maintenance/repair costs

More stable housing costs year-to-year

Typically higher costs than renting in the short-term

Tax incentives

Costs of relocating and moving

Build equity

Must pay property taxes

Pride in ownership and sense of stability

 

Do not have to answer to a property owner

 

Freedom to personalize your space without any restrictions

 


The move from renting to buying a home is an exciting one, but also something that should be carefully researched. By conducting your research ahead of time and purchasing a home when it is right for you, you will be able to enjoy this accomplishment for many years to come.

Learn more about HOMESTAR’s loan services here.

Sources:

Money Crashers. Renting vs. Buying a House - How to Make a Decision, Pros & Cons. Online. Website URL: https://www.moneycrashers.com/rent-or-buy-a-house/. Accessed July 6, 2018.

My Home by Freddie Mac. Pros & Cons of Homeownership. Online. Website URL: http://myhome.freddiemac.com/buy/homeownership-pros-cons.html. Accessed July 6, 2018.

My Home by Freddie Mac. Rent vs. Buy. Online. Website URL: http://myhome.freddiemac.com/rent/rent-vs-buy.html. Accessed July 6, 2018.