Renting or Buying: Which is Best for Me?

Many people have strong options when it comes to renting or buying. Sadly, a lot of people’s opinion are not very well informed. Growing up I always thought buying a home was the best option 100% of the time.

As I’ve gotten older, however, I have realized that renting is often the best option for many people. But how do you know which works for you? Below we discuss the pros of both options so you can see what makes the most sense for your situation. 

Pros of Renting

1. Flexibility

The most impactful pro for renting is the flexibility it offers in comparison to buying a home. This flexibility can be seen in three key areas:

• The ability to move when you want. Getting out of a rental lease is often much easier than selling your home.
• Remote workers can try multiple areas easier.
• Trying home sizes before purchasing a home. This is true for a potential downsize or seeing if you need more room than you think.

1.  

2. Financial

Another key benefit renting has over buying is Financial. While this may seem contradictory to what you have heard, there are some major financial benefits for rentals.

• Less upfront cost.
  • Renting is often much more cost effective upfront than buying. While buying a home often requires thousands of dollars in a downpayment and additional closing costs, renting often has a small security deposit and that’s it.
  • Depending on where you live, your monthly rent may be less than a mortgage payment.
• Smaller Upkeep costs
  • When renting you may need a smaller emergency fund since there is less upfront cost
  • Renting often avoids maintenance costs that come with owning a home: garbage removal, appliance repair, roof replacement and more.

3. Smaller Investment in Time and Labor

• Less effort to upkeep or worry about upgrades.
  • When owning a home, all the repairs fall on your shoulders. Renting allows that responsibility and stress to go to someone else. Also, since it is not your home, most people do not spend the time or money in upgrading rental homes.

Pros of Buying

Similar to renting, there are multiple pros to consider when buying a home.

1.  Personalization

• • When you own your home, you have the say on what upgrades or changes you want to make. The ability to add and subtract or put your personal flair on the property cannot be understated.

2. Financial

• • Home ownership is a long-term investment. Not only does it provide equity as opposed to a rental, but the home also increases in value year over year and benefits the owner. 
  • Home owners are also not subject to sudden, unexpected price hikes from landlords which sadly happen all too often. 
  • Tax deductions are another major benefit of home ownership. To understand more of this topic, see this helpful article.

3. Maintenance

• Another huge pro for buying is that homeowners are not dependent on their landlord for maintenance and repairs. I know plenty of stories where landlords are away, and the tenants had to deal with unresolved maintenance issues. 

4. Roots

• Too many people undervalue the importance of being part of a community, especially for families with children. While you can certainly lay down roots with a rental, the transient nature of rentals oftentimes limits the owner’s ability to create important relationships in the community.

Renting or buying is an important question to consider. Hopefully this article demonstrates that there is not a one size fits all for this vital topic and that every situation needs to be measured on its own. 

For more insight into this topic, check out Episode 15 – The Pros of Renting or Buying a Home on our Podcast episodes page.