Renting vs. buying; the ultimate question many people ask before they move to a new area or start a family. Which is better for your family? Well, the answer depends on where you are in your life and how long you plan to stay in a certain area. Security State Bank is bringing you a comparison of renting vs. buying so you can decide for yourself which will be best.
Pros of Renting:
- You don’t have an obligation to stay in the neighborhood or the town you are currently renting in.
- No maintenance is required if an appliance breaks of the furnace goes out. The landlord is obligated to fix the problem and finance the services required for repair.
- Test the waters with different types of properties. Maybe for one year you can rent a ranch style home and when you move on, you can try a two story property. This will help you decide what type of property you would want to buy.
Cons of Renting:
- Rent money is not building you equity. Although there are many benefits to renting, you are not building your money in any way.
- Cannot make changes to the property. Most landlords are fairly strict about changing paint colors or updating older areas of the home.
- If you want to get out of the rental agreement, there is typically a loss of deposit or penalty fee for breaking the lease.
Pros of Buying:
- You will build equity in a home by buying. Instead of putting money into someone else’s pocket through renting, you are building your own money.
- You can remodel, paint and change virtually any area of your own home. Buying brings the perks of creative freedom when it comes to designing the interior.
- You can settle into a community. If you plan to stay awhile, you can build relationships with the neighbors and community without the possibility of a lease ending.
Cons of Buying:
- You may be stuck for a while. When you buy a home, you make a commitment to stay in that house for at least a few years if you don’t want to lose money.
- If an appliance breaks down or the AC unit goes out, you have to fork out the money to fix it. Before buying a house, see what condition the appliances are in so you can be prepared for the future.
Security State Bank hopes these pros and cons lists help you decide if buying or renting is better for you. If you plan to buy, talk to the mortgage experts at Security State Bank to get started with the process.