Buying vs. Renting
Have you ever wondered which was better..Buying your own home or renting a home? Pros and Cons list are so informational which is why I love them! You can easily see what the positives are in a problem as well as the negatives. There really isn’t a solution that would be 100% pro with no cons at all especially when looking whether to buy or rent as it really depends on what fits best for your family. So are you ready to start learning which one is right for you? As Peter Pan would say, “Let’s GOOOOOOOOOO”
Let’s start out with Buying!
Equity- When you pay your mortgage you are adding equity into your account whereas when you rent you are doing the same thing, except.. it’s for your Landlord.
Tax Deductions- Don’t we all love to look for tax deductions as tax season approaches? Well did you know that you can actually deduct mortgage interest AND your property taxes? How awesome is that!?
Creative Control-Hate that shade of paint on the wall? No worries you can change it without having to ask for approval from the Landlord. Want to paint the bathroom a crazy hot pink color? Not a problem you are the boss of this home! So wishing you could add in a pool or a den to your home as an addition? Again, you have all control over your house as to what you can/cannot do. Try adding a pool or den to a rental and the Landlord may not be happy, especially if you give him the bill.
Maintenance Choices: Really want that addition to your home? Well guess what!? Because you are a home owner and you own the home you are living you can pick whether to do it yourself (DIY it!) or pick your own contractor.
Maintenance: So your water heater busted huh? Yeah you are 100% fully responsible for that. There isn’t a higher authority for you to go to and ask for them to fix it or else. Not going to happen at all. Dishwasher acting up? Refrigerator die? Looks like a trip to Lowe’s or Home Depot is in your future for a new one.
Flexibility: This one is really hard for those who move around a lot. When you own a home it is hard to sell or move within a few years of purchasing. From experience, I (Amy) rented for years until I was able to settle down in one spot for longer than a year due to a job that moved around frequently. But because I had grown up in the area I already knew the area I would love to live in. If you decide that you don’t like your neighborhood after you purchased is a lot harder and you would be out a lot of money if you moved within months of purchasing. Purchasing a home is a commitment not a short-term fling.
Career: Not sure if your company is going to transfer you within the next year or two? This is a frequent issue in the military. Buying makes the family stay in a particular area but if you must leave it would be harder.
Income: If you see a pay cut in your future or if it was unexpected it could impact on how you pay your mortgage. Can’t pay the mortgage? It starts to go into Foreclosure which then puts a blemish on your credit report.
Bad Credit: If you have bad credit it will be nearly impossible to get a home loan.
Since this is an already long post I will continue my series tomorrow following up with the renting pros and cons. Be sure to stay tuned! Leave a comment below of what the best “pro” is to buying a home and what the worst “con” is to owning your own home. See ya real soon!