Renting vs. Buying: Which Is Better for You? Pros and Cons (+ 10 Questions to Ask Yourself)

4 Reasons Why You Should Buy a House this 2021

Renting vs. buying a home is a big decision, with each option having its own pros and cons. You should weigh them carefully, else you end up buying a home you can’t actually afford or renting a place with a landlord you can’t stand.

Still can’t decide? Keep reading to learn more about the pros and cons of renting vs. buying. We also discuss questions you should ask yourself before choosing one over the other.

 

Renting vs. Buying: Pros and Cons

Renting and buying comes with its own pros and cons. Here are some of them.

 

Buying

Pros Cons
  • No landlord to answer to
  • Can upgrade or improve your home according to your preferences
  • May build credit and equity
  • Can give you a feeling of permanency
  • You complete total freedom to live however you want
  • You have your own privacy
  • Requires a substantial amount of money
  • Requires a substantial amount of money
  • Extra expenses beyond mortgage payments
  • Responsibility for remodeling and repairs fall on you, the homeowner
  • While you don’t have to pay rent every month, property taxes can go up

 

Renting

Pros Cons
  • May be cheaper than buying a house
  • May be cheaper than buying a house
  • Lesser upfront costs
  • More mobility (you can easily move if you want to)
  • No property tax bills
  • You’re not responsible for maintenance and repairs
  • You are bound by the rules and obligations in your lease agreement
  • You are bound by the rules and obligations in your lease agreement
  • Landlord can raise your rent (or sell the property)
  • Your landlord can evict you at any time
  • You can’t build equity
  • You can’t make any changes without your landlord’s approval
  • Many properties for rent have a “no pets” policy

 

Is It Better to Rent or Buy?

‘Is it better to rent or buy?’ The answer to this question isn’t so cut and dried. When considering your options, here are 10 questions to ask yourself before choosing the best option for you. ‘Is it better to rent or buy?’ The answer to this question isn’t so cut and dried. When considering your options, here are 10 questions to ask yourself before choosing the best option for you. 

  1. How much can I actually afford?
  2. Do I have enough savings for a down payment and closing costs?
  3. Is it a good time to purchase, in terms of the economy?
  4. How do home and rent prices compare?
  5. How long do I plan to live here?
  6. What are my family, career, and financial goals?
  7. Am I looking for flexibility or stability?
  8. Does this house fit with my long-term plans?
  9. Am I comfortable with all the risks of owning a home?
  10. How would renting vs. owning affect my current lifestyle?

If you’re moving to a new city, have an unstable job, or don’t know what neighborhood will feel like ‘home’, renting for a period of time can be a great option. During this rental period, you can get a sense of what you like or don’t like. You can also start exploring different purchasing options during this time. 

Also, while no one has a crystal ball, it’s important to evaluate your current situation and how much it’s likely to change in the immediate future. Think ahead and determine which best fits your goals. 

Here’s another thing to consider: Can you afford a home that will fit your lifestyle in the next few years? Or will a tight budget limit your options? For most people, renting or buying a home comes down to what they can actually afford at the moment. 

Sometimes, it may be better to rent for a little while until you can afford the home you can live in for some time to grow with your family. 

Still unsure? It may be helpful to talk with a real estate professional to help you think through the decision to rent vs. purchase a home. 

 

If you’re ready to buy a home, we’ve got a property for you to check out! You can visit Vista Sureste.

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