Is it better to Buy or Rent? What adult has not given thought to that question?
There have been countless articles, podcasts, social media posts and more about the difference and which is better.
But the answer to that question really depends on many different factors including how fast home prices and rent rising as well as how long you plan to stay there.
How and when one chooses to buy or rent also depends on where you live.
For example, if you live in a city like Seattle or San Francisco, it may actually be better to rent there.
There is also the reality that if you are currently renting, you can never truly feel like you have a “home”.
You cannot redo the kitchen or bathroom or make any permanent changes that would fit your decor and lifestyle.
At the end of the day, the real decision on whether to buy or rent will be different for each individual.
One of the benefits of renting is you typically have no maintenance costs.
Renters also do not have to pay property taxes.
However, we believe the best way to decide between buying vs renting is to look at real data and then decide which is the best option for you and your family.
As Realtors, we believe in the value and ideals of home ownership. And being homeowners ourselves, I can tell you there is no better feeling!
Lets take a look at some of the pros and cons of owning a home:
One of the greatest benefits of owning a home is building home equity. Home equity is the difference between what you owe on the home and it’s current market value.
Home Equity can be used for things like paying for your kid’s college or investing in something else.
You will never build up any type of equity in renting a property. But your landlord will!
Another benefit of buying a home versus renting is the tax benefits.
You can deduct your mortgage interest and property tax payments from your federal taxable income. cha-ching! 💲💰
Also when you sell your home, if you have owned the home as your primary residence in 2 of the last 5 years, you will not have to pay capital gains.
Another plus in buying a home is you get to improve the home the way you want!
Owning your own home means no landlord to dictate what you can and cannot do to the property.
Still on the fence about whether to buy or rent?
Now, to be fair, we will talk about the other side of owning your own home.
You will be in the same house for a while. If you are a person who moves around a lot, the lack of freedom to leave may not be something for you.
And yes, you will also have to pay property taxes. Even though you get other tax benefits by owning a home, this is something you have to do as a property owner.
However, if you have a loan the property taxes are typically included in your mortgage payments each month.
And the one thing many people who rent will have to get used to when they purchase a home is you will have to do your own home repairs and maintenance.
Now, let’s talk about the pros and cons of renting.
You can move to another town or neighborhood at anytime. So in that sense you have more freedom.
However, there is also the cost of having to pack up and move, new rental deposit, security, etc.
Another plus of renting is that you can live in an area you otherwise could not afford to own a home in.
So, again I ask, is it better to buy or rent?
I hope this article has given you some insight into the both sides of this important question.
Please don’t forget to consider the data in the picture above as well.
Let’s hear your thoughts about buying vs renting in your comments below .