Whether you’re a fresh graduate looking for your first apartment, a newlywed couple dreaming of a cozy nest, or someone reassessing life choices in the golden years, this comparison will shed light on the perks and pitfalls of both options.
Let’s explore the intricacies of buying versus renting so you can confidently decide for your circumstances.
Buying vs Renting: A Comparison of Each Living Option
Buying a home is a very important decision and can be a lifelong one. Most people looking into buying a home hope this will be their final destination for raising a family, while those who rent often look to spend less time or, perhaps, have fewer responsibilities than they would have if they purchased a home.
While both buying and renting have pros and cons and reasons to choose one option over the other, today let’s compare them.
All About Renting a Home
While renting used to be a cheaper financial decision, when the housing market crashed, landlords started raising the cost of rental properties.
This helped make renting more expensive than buying your own home in most cases. With many people struggling with the requirements to buy a home, renting became their only option.
When you rent a home, you won’t have to worry about any major issues a homeowner would have to worry about. A furnace going out and a roof leak are all responsibilities of the landlord, which helps cut costs when you rent.
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In addition, renting usually requires a one-year lease, as opposed to buying, where you’ll have a long term mortgage that usually lasts about thirty years.
Renting has its pros and cons for sure, but, it’s a great option for anyone who doesn’t meet the requirements to buy a home or is looking for fewer homeowner responsibilities.
All About Buying a Home
While owning a home can be a great asset to have, it also comes with a hefty price tag, large down payment, and financial terms that require you to pay your mortgage payment as well as property taxes for a very long time.
Buying a home does have its pros, when you own your home, you won’t have to worry about a landlord foreclosing and you having to find another place to live because they defaulted on their mortgage. When you buy a home, you need to make sure you can afford all that is required in the beginning as well as for the life of your mortgage.
Living in a home you’re purchasing means you’re responsible for every bit of wear and tear or major disaster that comes along. It’s no longer the landlord’s responsibility – it’s yours. If the AC gives out or appliances and other items in the house, that is on you now. When something goes wrong in your home, you’ll have to dish out the hard earned cash to fix the problem.
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Many homeowners weren’t aware of how expensive it is to maintain a house before getting into buying one. This is why it’s so important to have a home inspection done before purchasing a home and to really take into consideration which option is best for you.
It’s just a matter of knowing that you’re ready to take on this long term commitment.
I hope this comparison of buying vs. renting helps you see both options’ pros and cons to make an educated decision.