Are you currently renting and have wondered if buying a property would be better? Dealing with landlord problems and wondering if it would just be better to stop renting altogether? Well, then this is the perfect blog for you to read as we are going to discuss the age-old dilemma of renting vs. buying.

Renting Advantages

There are both advantages and disadvantages when it comes to renting a property. One advantage that comes with renting a property is that there are no maintenance costs or repair bills when it comes to fixing something that is broken. For example, if you are having a plumbing problem in your bathroom it is the responsibility of the landlord to take care of the cost incurred to fix that problem. Another advantage is that while you are renting the property you have access to amenities. If your apartment complex has a gym then you have access to that gym. There are also no property taxes for renters. Renters do not own the property that they are living in so they don’t have to worry about paying property taxes which is not something that a homeowner can do. 

Renting Disadvantages

Despite these advantages, there are also disadvantages to renting a property. One disadvantage of renting is that you can’t build equity in the property. Although you are paying monthly rent, the property will never fully be your asset. Since the property is not an asset to you but to your landlord there are several other disadvantages that come with that. For example, your landlord can increase the rent at any time. You also have to ask for permission to make changes to the property. Do you want to change the paint color of the wall from beige to bright blue? Unfortunately, you can’t do that without your landlord’s approval. Additionally, some properties also have policies for animals. Some rental properties allow dogs while others don’t and it can all be very different from property to property. 

Buying Advantages

Like renting, there are also advantages and disadvantages to buying a home. One advantage of home buying is that it is a good long-term investment. As a homeowner, you are investing in an asset for yourself with the possibility of the home appreciating as time passes. As you pay down your mortgage, your equity will grow and, over time, what you pay each month will go toward the balance of the loan rather than the interest. There is also more freedom when you purchase a home. Since the home is yours, you can make renovations and changes as you please. Homeowners are also able to experience more stability. People tend to stay longer in a home that they buy as buying and selling frequently to move is not an easy task. Buying a home means that the homeowner plans to stay in the home for a longer period of time. 

Buying Disadvantages

Although buying a home does come with advantages, it also has disadvantages. One of those disadvantages is high upfront costs. Closing costs on a mortgage can run from 2% to 5% of the purchase price. While one of the advantages of ownership is freedom, that also means that homeowners are responsible for their care of the home. So any type of maintenance problem like plumbing issues, a roof leak, or even a broken washing machine, all fall on the homeowner to take care of and pay for.

There are plenty of pros and cons to look at when deciding whether to keep renting a property or to purchase one instead. Consider all of these pros and cons and the most important thing is that you make a decision that is best for you!