On the fence about whether or not it’s time for you to buy your first home? After some time, paying rent can start to feel one sided. You give a substantial amount of your income a month to your landlord, but don’t get any of the financial benefits that come with owning your own home. Are you ready to buy your first home? Can you even afford it?
There are pros and cons to both renting and buying, so really it comes down to finding the right option for you. To help you make the decision, here are Zippylife’s list of the pros for renting and buying.
Renting vs Buying a Home
When you buy your own home, you don’t have to worry about following any rules but your own. What you say and want is what goes. When you rent, a lot of times you won’t be able to paint or hang pictures with certain materials. In your own home you can get as creative as you want with the decoration.
Want to knock down a couple walls? Put in a pool? Finish the basement? Go right ahead. If you have the cash to complete the project, nothing should stop you. When you own your home, renovating is actually one of the best things you can do since it increases the value of your home. Just make sure not to over-renovate!
Stay as Long as you Want:
One of the perks of owning your own home is you aren’t bound to a lease. Once you sign the dotted line, that house is yours until you decide to sell it. When you are renting, you run the risk of the landlord asking you to leave. Buying certainly eliminates that problem.
The cost of rent is changing every year. Renters might find that when they go to sign their new lease their monthly rent increases. That is something a homeowner doesn’t ever have to deal with. You can count on the fact that your mortgage won’t fluctuate, so you never have to worry!
Buying a home is an investment because you can build up that house’s equity. When you are renting a place, only the owner can build the equity. Sadly, you get no benefit from it at all. As a homeowner, equity will become your new best friend. At the end of the day, it’s a huge benefit of owning a home.
Filing your taxes as a homeowner is just a little bit more satisfying than as a renter. You will get two new tax breaks this year, the first is on your mortgage interest, and second, on your property taxes. That is a nice chunk of change to add to your bank account. Start planning that renovation or vacation now, my friends.
Freedom to move around:
Leases don’t last as long as mortgages so you have the freedom to move around a lot and try out other neighbors. This is a great way to find a neighborhood that you like enough to actually purchase a home in. When your lease is up, all you have to do is worry about finding a new place. When you own a house and you want to move, you have to go through the home sale process which can take months.
If you have a job that requires you to move around a lot, it might just be easier for you to rent a place. Renting helps you avoid having to buy/sell a new home every single time you move. It definitely will help to alleviate some future headaches for you.
Tendency to be in newer, hipper places:
Most renters tend to be younger, so most apartment buildings, or homes up for rent are found in younger, more “hip” areas where the renters want to be. These areas are normally close to nightlife, restaurants, and other amenities right at your doorstep. You can still find homes to rent in suburbia, but not as easily as you would find in a city or near a university.
If you have bad credit:
If you have a bunch of student loans or credit card debt, it’s just not the right time to own your own home. To get a good interest rate on your mortgage, it means you need to have pretty decent credit. A mortgage is no joke, you want to make sure you are financially ready for this investment. Renting can actually help you build better credit, just make sure to always pay on time!
No maintenance expenses:
Owning your own home means when something breaks it’s up to you to fix it. When you are a renter, all you have to do is call your landlord and they have to get the item fixed for you. You won’t have to spend the money to fix it, which means you have the opportunity to save some extra cash!
So what’s your answer? Is it time for you to take the leap and become a homeowner or are you going to sign that lease of yours for another year or two. What’s it going to be?