2/11/2020

The Benefits of Buying Over Renting

There are pros and cons for both renting and buying a home. It depends on location, budget and which best fits your personal goals!

One of the most important questions home shoppers should ask is, “Am I saving more money buying a home instead of renting?” The short answer is: It depends!

Mortgage and rent payments differ depending on where you are in the country so it’s always best to do some calculating in specific areas when you’re shopping for a new home. Compare it to the average rent in your area and decide if buying or renting is best for you!

In many ways, however, buying has an advantage over renting. Let’s take a look at some of the benefits you can experience when you buy a home.

Money Savings

Buying a home is an investment. When you rent, all that money goes to your landlord, and they even have the power to increase rent over time. If you decide to move out, that money is gone and you have nothing to show for it. For example, if you are paying $1,500 in rent and your landlord increases your rent by 5% each year, you’ll be paying about $100,000 over 5 years and none of that will benefit you.

With your monthly mortgage payments, you’re contributing towards your home’s equity, which in turn contributes to your own net worth. With a 30-year fixed rate mortgage of $300,000, you’d be adding about $21,000 to your net worth over 5 years! Additionally, if you get a fixed-rate mortgage on your home, your mortgage payments stay the same while rent can increase over time.

Landlords

The problem with having a landlord is not knowing whether or not you’ll be kicked out of your home for one reason or another. They have authority over your living space and if it’s convenient for them, they can evict you on short notice, putting you in an unfortunate position to find a last-minute apartment.

Additionally, landlords can take a while to get back to you with any maintenance problems. Plumbing issues? Broken dishwasher? Sidewalks not shoveled? They may not respond to you for days whereas when you’re a homeowner, you can get these issues resolved as soon as possible!

Your Space is Your Own

When you’re renting, your living space isn’t truly yours. If you want to remove carpet in exchange for hardwood, paint your bedroom a different color, or make any home improvements, you need the permission of your landlord in order to do so.

As a homeowner, you have no one to answer to but yourself. You can customize your home any way you want and the best thing is that home improvements can increase the value of your property!

Constantly Moving

One of the biggest headaches to renting is having to move. Whether it’s because you found a better neighborhood to live in, unreasonable rent increases, or you wanted to adopt a pet that isn’t allowed in the property, moving is arguably a huge stressor. You’ll need to pack up all your things, rent a van or moving company, and unpack in your new rental space – all to do it again the next year or in a couple of years.

With a home you own, you only have to move once (considering this will be your forever home) and only on your terms. You won’t have a landlord to kick you out of a property you love.

When it comes to buying versus renting, make sure you do your research and consider the pros and cons of both. Don’t forget – this is your decision! Do what’s best for you, your family, and your goals.