So you’re thinking of moving to a new city. Congratulations! Welcome to the crazy ride that is selling your home, exploring a new place and finding your new home. With this ride comes questions, to rent or not to rent? To buy or not to buy? Which is more cost effective? Which works best for my lifestyle? All of this can be overwhelming, but have no fear! RE360 is here to help!
Before diving head first into the decision to buy or rent, you should consider the pros and cons of each. With that in mind- lets dig in!
- A sense of stability- You become a permanent part of the community and have the sense of security that comes with owning your own home. This makes buying a good option for families or people really looking to settle down.
- Gaining home equity- Home ownership comes with the equity you miss out on when you rent.
- Creative Freedom- When you buy your house it’s YOURS to do with whatever you want. No one is going to get mad if you paint your living room neon green!
- The cost of a down payment- The most obvious con is the cost. When you rent you usually pay the first and last months rent up front. When you buy you instead, have the hefty cost of down payment.
- Mortgage>Rent- In most areas your mortgage rate could end up being higher than your monthly rent. Watch out for this and make sure you’re making the financially sound decision!
- Responsibility of Property Maintenance- When you rent, your landlord typically takes care of any major maintenance, when you buy, it’s all up to you. If you plan on buying make sure you know how to perform basic home maintenance.
- Flexibility- Renting comes with less commitment. As long as you don’t break the lease, if you want to leave at the end of the year, you’re free to do so! This makes renting appealing to young people and recent college grads.
- Maintenance- In most cases your landlord will take care of most major maintenance problems and up-keep. This leaves way less stress for you!
- Cost- In most areas rent is cheaper than a mortgage. Be cautious though, as this can change with the economy.
- Rules- Leases come with rules. No smoking, no painting, no pets, etc. Sometimes these rules can be quite constraining, making them something to seriously consider.
- Rent Payments- Rent payments never stop. Mortgage payments do. Take that as you will.
- Laundry- In most rentals you have to pay for laundry. The cost isn’t big initially but it does add up as the months go on.
So what’s the answer? To put it simply, but not simply at all, there is no perfect answer. It all depends on what works best for your life situation. Take all the pros and cons listed here into account and make an informed decision based on what would fit your life style the best.
And remember, if you ever have any questions during the moving process, we at RE360 are always here to help.