There are lots of options when it comes to finding the right place to call home. When looking for a new place to live one of the first steps is deciding on whether to buy or rent. There are many pros and cons for both sides. What works best for you depends on your financial situation, personal goals, and lifestyle and it looks different for everyone. So, let's break down some of the pros and cons of buying and renting 

BUYING VS. RENTING

Renting Pros

• You have flexibility - Want a change of scenery? Need more space? Found your dream job in a different city? No problem. Renting allows you the flexibility to make changes to your living situation rather quickly as rental terms are typically short and flexible. 

• No unexpected budget changes - If something breaks, you are not responsible to cover the bill. Your monthly budget is more predictable because you don't have to prepare for unexpected repairs or maintenance. 

• Less to think about - On the note of repairs and maintenance, you also don't have to be the one coordinating repairs and maintaining the property. Some landlords will even take care of things like lawn care and snow removal. That means more time for you!

• Great for short-term financial gains - No PMI - No Taxes - No HOA Fees - No Home Owners Insurance - No Maintenance and Repairs. Renting can be a great way to save money in a short period. With less financial responsibility, this allows you to save some cash rather quickly. 

Renting Cons

• Price will change - Competition, inflation, and rental demand can all contribute to raising rental prices. On average rents are increased by about 3% per year. In 2021, rents increased by 11.2% from December 2021 to December 2020 according to Core Logic. Even though renting can be a great way to save money in the short-term, it is not as good of a long-term investment in comparison to the equity you can earn owning a home.  If you plan to live in the area for a longer period of time, it's good to consider the long-term financial investment of buying a home. You might try using a calculator like this one on nerd wallet to determine which option makes more sense financially in the long term. 

• Less creative freedom - Renting restricts your creative freedom. When you rent, renovating your space is often not an option. You're limited to the rules and expectations your landlord sets in your rental terms which generally, don't allow for much creative freedom. 

• Repairs are done on your landlord's timeframe - As maintenance and repairs are your landlord's responsibility, things will be done on their timeframe. Overall, landlords are timely on repairs and maintenance however, if another unit has an emergency repair, your maintenance may be delayed. 

Buying Pros

• You own the home! - There is a lot of satisfaction in owning your own home. You can take pride in owning a home of your own.

• Long-term investment - The condition of your home and the local market will determine the price of your home. Your home's value will increase over time. That means equity in your pocket!

• Creative freedom - Want to change the - paint color, floors, or kitchen appliances? You have the freedom to change your home however you would like! 

• Repairs are done within your timeframe - You are in charge of repairs so that means they can be done within your timeframe. No waiting for the maintenance guy to have an opening in his schedule. 

Buying Cons

• Unexpected expenses - Repairs are your responsibility so that means if you have to replace the furnace or repair the roof, that bill will come out of your wallet. Owning a home requires a higher financial investment to ensure the home is maintained and everything is functioning properly.

• You are tied down - Your dream job came up .... in a new state. Owning a home can make moving more challenging, especially on short notice.

• More to think about -  Owning a home requires more coordination on your part when it comes to maintenance and repairs. If you need to make a repair, you will be the one coordinating the repairs with vendors. Even little things like changing the furnace filter or filling the water softener with salt can be easily forgotten if you don't organizational tools in place to remind you to maintain your property.

BUYING OR RENTING - HOW TO MAKE THE DECISION

Deciding to make a move can feel overwhelming, even when you have all the information. That's why partnering with an expert is so important. They will take into consideration your financial situation, lifestyle, and goals and evaluate all the options to help find a home that is right for you; whether you are buying or renting. When you partner with an expert, they will make a clear path to your goals and be with you, every step of the way.

So, if you are considering making a move, reach out to one of our expert agents. You can trust our agents have your best interest in mind and will help you find your way home.