Finding somewhere to live is essential in life, we all need a roof over our heads. But when deciding where to live, should you rent or buy your own home?
Around 65% of US properties are lived in by the owners, while around 35% are occupied by tenants that pay rent. But with pros and cons for both buying and renting, how do you know which you should do?
In this article, we’ll look at owning vs renting a home so that you can make an informed decision about which path is right for you.
Renting Means You Won’t See a Fluctuation In Monthly Payment Amounts
When you own your own home, chances are you’ll have a mortgage to repay. Very often, the rate you pay will be dependant on a fluctuating interest rate. As interest rates rise, so too will your monthly payments.
One of the benefits of renting is that your monthly rent will stay the same month-on-month unless your rent increases.
Being a Renter Means You Don’t Build Up Equity
Renting a property means that all of the money you spend on your rent will never come back to you.
When you own your home, your mortgage payments will become equity in your property. If you come to sell your home, your share will have risen by the amount you’ve paid off.
Home Ownership Means You Need to Pay for Any Maintenance
When something goes wrong in your home and you rent it, your landlord is obliged to replace or repair it. When you own your home yourself, this is all down to you.
Maintenance can be quite costly, and some homes need a lot of work carried out.
Renting a Home Makes Moving Easier
When you rent, you’ll only ever need to give notice on your property before you can move out. When you own your home, you’ll need to go through the rigmarole of selling your property and buying a new one. This can be both time-consuming and expensive.
Owning a Home Gives You the Freedom to Modify It
If you own a home, you can modify it as you see fit as long as you don’t breach any building codes. One example of an improvement you may want to make is to add solar panels to your property. Check out blueravensolar.com/utah/ for more information.
When you rent, you’ll not usually have a say in any updates the property gets.
Your Property Could Rise In Value Over Time
If you own your home, any rise in the value of your property is beneficial to you. When you rent, it only benefits your landlord.
A rise in the value of your home could mean that you have a lot more equity stored in the property in comparison to when you bought it.
Owning vs Renting a Home
When comparing owning vs renting a home, you’ll need to weigh up where you are in life at the moment. If you’re in a position to put down permanent roots and can afford to maintain your property yourself, buying is the best option.
If you’re not ready for this, renting will give you greater freedom.
For more great articles similar to this, check out the lifestyle and home improvement sections of the site.