Renting or buying a home? How do you know which is the right one for you? We all go through different times in our lives where buying might be the better option, vs renting.
Here’s a list of what we think is some of the top reasons to rent or to buy… But at the end of the day, it’s comes down to what’s best for you!
REASONS TO RENT
- Bad Credit. Maybe you need some time of making your rent payments on time to help rebuild your credit and in doing so, be able to qualify to buy a home in the future.
- No Maintenance Expenses. Lets be honest, this is very appealing to just about everybody! If a pipe leaks, you don’t have to run to the store. You pick up your phone and call your landlord or property management company.
- Job Uncertainty. Are you between jobs, or maybe thinking about switching soon. Being a renter allows you the freedom to do so. Especially if you are on a shorter lease agreement, or even a Month to Month.
- Which Neighborhood Is Best? This is extremely important especially if you aren’t from around the place you are renting. Finding the “right place” for you and/or your family can take a little time to decide. Now you’ll have some time to research and talk to others about where you want to live or buy a home for long term.
- Utilities/HOA. Some landlords make deals with their tenants and the tenants are left paying the gas and electrical. While the owner still pays the water, sewer, trash. Also, living in an HOA area but not having to pay that bill each month is very enticing as a renter!
- Big Life Changes. As we all know, you can’t predict your future. We do our best to plan it out, but it doesn’t always turn out that way. Being a renter allows so much more freedom and can be a much-needed relief while you’re dealing with some bigger things in life.
REASONS TO BUY
- Decorating Control. This is one the best parts of having your own home, in my opinion 😉 I love to paint, update, and make my home… MY OWN! I can do what I want, hang as many pictures as I’d like, decorate my child’s room with a cute theme, and paint the front door white (instead of keeping it at that unattractive green)
- Equity. When you have a mortgage, you increase your degree of ownership in your home with every payment. A good general rule is that if you plan to stay in your home for at least five to seven years, the costs of owning the home are more likely to be offset by accrued equity and increased housing value. If interest rates drop, you have the option to refinance your mortgage at a better rate. When you pay rent, you are actually paying your landlord’s mortgage and adding equity to their bank account.
- Maintenance Choices. You have full control here and to a lot of people, which is very important. Being able to hire a contractor or do it yourself, like finish that theatre room you’ve been dreaming of for years. If you live in a Homeowner’s Association, you get to pay a monthly fee for certain work to be done (depending on the HOA) In Utah, it’s so nice to have somebody snow plow your driveway and shovel your porch and steps before you’ve even left for work that day!
- Tax Deductions. Being a homeowner you can deduct mortgage interest along with your property taxes. Renters do not get this bonus! Also, if you meet certain requirements the IRS won’t apply “capital gains” tax on your profits when you sell your home. In addition, those who work from home may be eligible to take deductions for their home office and a portion of utilities.
- Lifetime Friends. Yes, friends can be made ANYWHERE! But it’s amazing how close you become to some of those who live by you, and you watch your kids grow up together. As a parent, it’s nice to know, you have a neighbor that you trust if you need to run to the store, or you’ll be home from work a little late. It’s harder to build those relationships when you’re in areas that people are moving in and out every week.