The decision of whether to rent or buy is a very personal one. Price tag, location, lifestyle, and more can all play into making a decision on whether to rent or buy. In a fast-paced real estate market, many people are looking at their options when it comes to buying a home or renting. From freedom versus security to cost versus hassle, there are many factors that go into the decision of renting or buying. If you’re not sure if you should rent or buy, read on for the pros and cons of each.
Renting and Avoiding Maintenance and Utility Hassles
For some, and even when a company makes it easy, dealing with utilities, troubleshooting HVAC system issues, and the overall maintenance required in maintaining a home can be a major disadvantage to homeownership. For these people, the ability to call a landlord and have them work with a service provider is one of the biggest perks of renting. Not only can renters save money on expensive repairs, but they don’t have the worries that come with the responsibility of ownership.
On the flip side, there are places like FlowRite Metering who make it easy for homeowners to manage services to any property, including rental properties. FlowRite provides professional knowledge and expertise in water, electric, and gas sub-metering installations and service.
Homeownership Freedoms and the Ability to Refinance
Some people opt to buy homes simply because it gives them more control over their quality of life and finances. The ability to install a dishwasher without asking anyone, carry out a spontaneous home improvement project over the weekend, or make use of low mortgage rates from a VA loan opportunity make owning a home the preferable choice to some.
Perhaps you live in Sydney, Australia, and are hoping to save some money on your mortgage payment. After doing a little research on the lowest refinancing rates, you might be pleasantly surprised to learn that you can bring your monthly payments to a level similar to renting while building equity in your home.
Others have trouble with credit scores or interest rates when it comes to being approved for a mortgage or finding a monthly mortgage payment they can come up with. For these people, renting is preferred to buying a home. Renters find freedom in other ways, like the ability to rent property in places with amenities they might not be able to afford in a home. Furnished apartments, swimming pools, and gated community security can all be part of renting a luxury apartment versus owning a home.
Convenience and Renting Furnished Properties
More people than ever are turning to shorter-term rentals and opting for furnished apartments as the real estate market during the Covid-19 pandemic moves quickly. For some, the ability to work remotely is causing a trend in big moves that make this rental arrangement not only convenient but the easiest way to solve temporary housing problems.
Maybe you plan to attend Georgetown in the fall and have been looking at furnished apartments in Washington, DC on Hello Landing while renting out your home in another part of the country. For many homeowners, a great way to continue to build equity in their homes is to rent them out while signing their own leases in luxury apartment buildings. They are enjoying things like concierge service while using their primary homes as an investment for the future, something that will lead to more options down the road.
The Final Decision
For many, the final decision on whether to rent or buy will come down to the price tag, location, and lifestyle. The bottom line is that money will play a huge role in whether a person rents or buys. Some people will struggle to get approved for a home loan. Others won’t have the money to put down or would rather spend it on other priorities. There are no right or wrong answers to what you decide. Start by creating a list of reasons you could benefit from each living situation.
Ask yourself if you’re in the financial position to handle a down payment, closing costs, and maintain an emergency fund before buying a home. Consider the location of where you hope to move and weigh the pros and cons of whether it will serve your long-term needs in a seller’s market. Remind yourself of the freedom you’ll have to move with a year-long lease versus a mortgage and more.
Before making your final decision on whether renting or buying is right for you, do some research. Attend an open house. Visit an apartment complex and talk to the property manager. Don’t hesitate to ask questions, including of your bank, possible lender, and a licensed real estate agent. By taking that extra time to weigh the pros and cons, you’ll improve your odds of reaching a decision that works for you for the long term.