Renting a Home vs Buying a Home: Benefits and Drawbacks
The debate is as old as time. For decades now, people have been comparing renting vs. buying and trying to decide which is better. People are arguing on both sides, and each has some solid points.
Both renting and buying have been made infinitely easier and better thanks to the internet. For example, you can have online apartment locators working with you from the comfort of home if you check out The Urban Avenue here! There are also several great tools for buyers, too.
But the question still remains, which is best? Well, the answer truly is, it depends. While the right move for one person might be to buy a home, it might make more sense for another to rent an apartment.
Without any further ado, this guide is going to go over some pros and cons of renting to help you decide which is the right choice for you.
Benefits of Renting
Perhaps the biggest benefit of renting is the flexibility it provides. Whether you sign a month-to-month lease or even one that is a year-long, renting doesn’t tie you down to a particular city or area. Once your lease is up, you can move without any penalties.
This is a great choice for students or those who aren’t quite sure where they will end up in a few years. Renting is also great as it is much more low-maintenance than buying. You don’t need to worry about maintenance, as it is generally up to the landlord to make major changes. You also aren’t responsible for paying taxes or other fees. However, getting renters insurance is a great option for those looking to protect their personal belongings.
Oftentimes, when you rent an apartment, it has the potential to come with some amenities like a secure building, on-site staff, and potentially even things like a fitness center or pool.
Drawbacks of Renting
One drawback is that the money you spend on rent isn’t going towards building equity. It isn’t a waste, but rent money isn’t doing as much for your future as paying a mortgage is. Another drawback is that your landlord can increase your rent. While there are a few stipulations, you could find yourself paying higher rent in the future than you were expecting.
With a home, your mortgage will stay the same year after year (as long as your interest rate is fixed and until your term is done). Also, when you rent, you are often limited in terms of what you can do in the space. You might not be able to paint the walls, add more than a few pieces of art or make any major renovations. Some buildings might even have restrictions in regards to pets.
Benefits of Buying
One of the best things about buying is simply that it gives you full control over the space and allows you to design and renovate it as you please. Whether you want to update it to increase its value, or simply making changes that you like, you are free to do so. This can help you make a home much more personal, without having to worry about restrictions in most cases.
Also, when you pay your mortgage, you are working towards the eventual full ownership of your home, an asset worth hundreds of thousands of dollars or millions in many cases. You also likely won’t need to worry about your monthly cost changing wildly from year to year like you may when you rent.
Drawbacks of Buying
Of course, there are also some drawbacks of buying a home or apartment that are important to know about. The first is that it is generally more expensive. Not only will you need a hefty down payment, but will be responsible for additional costs on top of your mortgage. This includes maintenance, taxes, insurance, home warranty, and others.
Also, while this isn’t always negative, buying a home is a large commitment. Unless you sell your home, you will be tied to a certain city or area for decades and moving won’t be as simple as if you were renting. It is generally more work to own a home, too, as you will be responsible for maintenance, tending to the outdoor space, and other important tasks.
In conclusion, we hope that this guide has been able to help you out when deciding how you want to live. Neither renting or buying is the better option, as the choice depends on where you are in your life and the kinds of goals and preferences that you have.
Posted by Evan Harlow R(S) 82003 on