Buying a Home Versus Renting

Are you wondering whether you should take the plunge and buy a home? Maybe you’ve been thinking about the pros and cons of renting versus buying. Well, we want to make your life just a little bit easier, so we’ve come up with the pros and cons ourselves. 

Pros of Renting a Home

So let’s talk about renting homes first. Chances are you already know what it’s like.

You know that if you rent a home, monthly costs tend to be pretty fixed, meaning you pretty much know what you are going to be paying for, without the worry of an extra cost creeping up out of the blue. You also are not subject to the amount of responsibility that owning a home comes with. Some of the advantages of renting a home are:

  • You’re not paying a lot up front

Usually, with apartments or homes for rent, you're only paying for a security deposit and administrative fees.  Even with many security deposits, you have the opportunity to receive the money back in full at the end of your commitment to the property if the property is kept in good condition. However, with putting a downpayment on a home, which could be thousands of dollars, depending on the kind of loan you get. 

  • You’re not responsible for it in the grand scheme of things. You’re just temporarily responsible for it for as long as you have a lease. 

This is pretty self-explanatory, but with renting, you have no imminent ties to the property and you are not responsible for upkeep. Your landlord/owner pays for property taxes, maintenance issues, and repairs. For example, if you find your roof is leaking...oh well! Call the landlord to take care of it. ;) 

  • No worries about paying a mortgage if your income is not steady

Owning a home may seem like a ton of financial responsibility; a mortgage is quite the feat to take on. Renting a home feels a little less stressful.

  • Ability to move to another location if necessary or desired

If you know that you don't have any ties to where you are living and you think that sometime in the next year or two that you might want to move, then owning a home is probably not in your best interest. Some loans require homeowners to have that home as their permanent residence, meaning there is no option to rent out and move somewhere else if you choose.

Pros of Buying a Home

While renting a home instead of buying one may sound more appealing, there are huge advantages to buying. Here are some of the pros of buying a home. You may want to buy a home if: 

  • You want something of yours

Makes sense, right? With buying a home, you are the final decision maker. You are now the owner meaning you can
remodel or update your home at any time of your choosing. If you want to paint your bedroom pink, you can do and
there's no one you have to ask permission. Well, you might want to ask your spouse before painting that room pink.

  • You're wanting to build equity

Owning a home offers you the chance to make a great investment and to build equity, whereas with renting a property,
you walk away with no profit. When you are renting, you are paying your landlord's mortgage! Why pay your landlord's
mortgage when you can have your own and build equity for your future! If home prices rise, you may eventually be
priced out of being able to buy a home in the neighborhood you are interested in. This is happening
more and more
the current real estate market as the prices
for homes are increasing as well as the interest rates.

  • The tax benefits

The benefits of tax deductions for owning a home is an appealing factor. There are various deductions at the end of the year for people who own homes.

  • You can find a tenant if you need to move

Most loans don't have restrictions on renting your house out later.  Buying a property and later making it a rental is a great way to build equity and wealth!  Imagine renting your house and each month the balance on the mortgage drops a little more.  30 years from now when you are ready to retire you could have a house with no mortgage and passive income coming in the mail to you every month from your tenant.

  • You can resell at a later date

While it seems like owning a home may be permanent, it's not completely permanent. You always have the option to sell at a later date. Let's say 5 years down the road, you get an amazing job opportunity in another city. All you have to do is reach out to a top Realtor and put your home on the market to be sold! 

If you are thinking of buying a home in Wilmington, NC we are here to help! We can answer any questions on the home buying experience that you might have. Curious about how much you can qualify for? Don’t forget to speak with a lender to get pre-approved and make the process go that much quicker! We look forward to hearing from you. 

 

 

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