To Rent or To Buy?

by | Jul 4, 2018 | Buying, Renting

Pros of Buying a House:

Cons of Buying a House:
It’s Yours!
  • Freedom to fix the house as you would like (paint walls, landscaping, change the appliances, etc.)
    • Make it your home
    • A sense of belonging to a community
    • Have no limitations on which pets or how many pets you can have
Building equity over time
  • Every penny you put into paying off the principal of the loan is equity you are building in your house
    • You are paying your mortgage not someone else’s
    • You can use the property for rental income further down the road or rent out a room while you’re in it
Taxes
  • You can get Federal Tax Deductions
    • Homestead Exemptions
A step in your financial security A fixed rate
  • Will always know what your rent is
 The possibility of the market crashing and financial loss The upfront costs of buying
  • The earnest money
  • The homes appraisal
  • The homes inspection
    • The down payment (usually between 3% to over 20% in some cases)
    • Property Taxes get paid up front for each year, so you would have to compensate the seller of the property that amount back
    • Home Owner’s Insurance
    • Closing fee’s
    • Loan origination charges
HOA fees
  • In charge of repairs if something breaks
  • May take around 45 days until the property becomes yours
 
 

Pros of Renting a House:

Cons of Renting a House:
Less responsibility for repairs and maintenance
  • However, waiting for items to be fixed can be an issue
It can be faster to get into a rental if you are short on time Credit requirements are usually less strict. Most cases, no HOA payment Up and go to a new adventure when lease is up		 Depending on the lease, if you want to cancel early you might have to pay the entire agreed upon lease. Pet limitations
  • Type of pet, breed, size and the number of pets are all at the landlord’s discretion
Not building equity in the house
  • Paying someone else’s mortgage
Must get permission before you do anything to the house (paint a wall, landscape, any changes) Possibility of eviction The upfront costs
  • Security deposit
  • Upfront the first month’s rent
  • Pet deposits
  • Cleaning fees
  • Renter’s Insurance
Landlord can raise the rent at the end of a leasing period Landlord can come to property given 48 hours’ notice