Should I rent or buy?
Which side are you on?
Life is full of hard questions: Paper vs. Plastic. Coke vs. Pepsi. Apple vs. Android. The Lannisters vs. The Starks (Maybe not this last one...)
As far as heavily debated topics are concerned, you can throw in Rent vs. Buy. With the battle lines drawn, let's step into the ring, and see if we can crown a champion!
Reasons to Buy 🏠
Moving soon? If you plan to set up shop for the long run in a particular, buying a house is something worth exploring. The initial costs, such as a down payment and closing costs, will be recouped over time.
In the long run, you will actually OWN the home after you’ve paid off your mortgage. Then you just have the property taxes and insurance, which is undeniably much cheaper than rent!
2) More "Fixed Costs"
Landlord ever jacked up your rent $200 a month? Not fun. Of course, property taxes do fluctuate both up and down over time. However, a fixed rate mortgage of 15 or 30 years looks stable compared to a fluctuating rental market.
Making a house your home is a lot easier when you call the shots. Not having to ask permission from a landlord gives you the power to do what your please.
There is also the sense of pride in ownership. According to recent survey by NerdWallet, 75% of Americans said that owning a home was a goal of theirs in 2018.
Reasons to Rent 💰
Of course when faced with a leaky faucet or a flooding issue, the renter isn’t going to be swiping his card at the local Home Depot or Googling a local plumber. Renters know that it won’t be their wallet hit by the unexpected up-keep of the property.
2) Short term flexibility
Moving to India in the next 2 years? Rushing to buy a house may not be on the top of your list. When your rental lease is up, it’s up. Packing up your stuff and getting a U-Haul needs to done for renters and buyers. You can kiss that place you called home goodbye. As a homeowner, you would either have to rent it out, or sell it, plus worry about recouping your downpayment and costs of selling.
3) Lower expectations
How “perfect” does your furniture need to look in your rental unit? How much is that outdated kitchen bothering you? If you are the homeowner, the answer is likely going to be more so. Renters can “deal with” their imperfections better because after all it's not their place. Renter's don't suffer from the keeping up with the Jones's mindset.
And the Winner is.......
Because no two situations are the same.
Looking for a more decisive outcome of what makes sense for your situation? Let's chat! Schedule an appointment below.