Should I rent or own?

So, you’ve reached a decision point in your housing situation. Maybe you are nearing the end of your lease agreement. Or perhaps you are ready to move out of your parents’ house. Maybe you just got a new job that requires relocation. Regardless of why you are questioning if you should rent or own, this is an important question worth diving deep on. This article will look at the pros and cons of renting versus owning a home. 

Upsides of renting 

Renting an apartment, house or even a room can be a great option. It is a great way to budget because your expenses are fixed. There are no unexpected maintenance costs every month. If the dishwasher breaks, you call your landlord and they handle the repair and cost. You might even rent in a complex that includes lawn care and snow removal, fewer chores on your to-do list. This is also a great option if you don’t know exactly where you want to live. It allows short-term commitments to explore different areas. There are many upsides to renting and it can even be used as a time to save a down payment for a house. 

Disadvantages of renting

While there are benefits to renting, there is also a downside to renting. There is no permanence. You could rent the same place for decades, but it is still not yours. Your landlord can raise the rent however they see fit. You also might not be allowed pets or could pay extra fees for pets. And you have no control over the maintenance, cost, and stability of your housing - it’s all up to the landlord.  Plus, you are not building any equity and there are no tax benefits. 

Benefits of owning

With no one to answer to except yourself, owning a home gives you the freedom to make improvements and give the house your own style. There are also a lot of financial benefits as well. You are also able to lock in a steady mortgage payment and enjoy dodging rising rent prices. You get to build equity and enjoy tax benefits. Plus, you can even payoff your mortgage completely making your housing costs very low. 

Challenges of owning 

Although the benefits of owning may sound great, there are different responsibilities and challenges that come with home ownership. Just getting into a home can be very difficult and expensive. You will need money for a down payment, inspection, and appraisal. You are now fully responsible for all your repairs and maintenance. No more calling the landlord to fix the HVAC that’s all on you now. This unexpected maintenance and repairs can hurt your monthly budget. It is a longer commitment and you can serious consequences to your finances if you need to move. 

It’s your choice 

Your unique circumstance will help you decide if renting or owning is the right path for you. And just because you are renting doesn’t mean you can’t own a home in the future. Or a homeowner might sell and decide to rent for a short period of time as well. There is flexibility in how you want to take care of your housing needs. Just take into account all the pros and cons of renting versus owning before making your decision.