Buying a home is a common goal for many Americans. But while it is a good dream to have, it is not necessarily the best thing for everyone. For some, renting offers more enticing benefits because of factors like the nature of their work or the state of their finances. To help you decide whether you should buy or rent, here the key advantages of each option:
Advantages of Owning Your Home
- More freedom and privacy
- A source of investment
- Mortgage payments are stable
- More security
You are free to do anything you want with your home without needing approval from a landlord. This means getting to redecorate, remodel, and make renovations however you like. Additionally, with more space separating you from your neighbor, you also have greater privacy.
While renting generally costs less in the short run, you do not gain equity for your money. On the other hand, owning a home allows you to make a profit off of your investment. Real estate generally increases in value over time, allowing you to take control of an asset that builds equity.
Paying for a mortgage is more stable and predictable than paying rent, which can go up anytime depending on market conditions. Because your monthly mortgage amortization is more or less fixed, budgeting and allocating your finances are simpler. Consistently paying for your mortgage on time can also give you a better credit score, which can help you in applying for future loans.
Owning comes with the security of having a place to live without having to worry about suddenly getting your lease terminated for whatever reason. You also avoid needing to renew your lease and rent agreements, which can be time-consuming to negotiate and often come with uncertainties.
Advantages of Renting
- More flexibility to move around
- Lower moving costs and no real estate tax
- Little or no maintenance responsibilities
- Access to special amenities
Renting does not tie you down to a single place. This makes it easier to move around, especially if your job requires you to travel frequently. It also benefits retirees who want to downsize to a more compact and affordable place to live or starting professionals who have not built enough savings to buy a home.
Though renters have to pay for rent and a security deposit in advance, they have fewer upfront costs. There will be no need to save up for a down payment and closing costs, so you can live in a good area without needing a huge investment. Not owning property also means you are not subject to real estate taxes, which can be a hefty burden for some. All the money you save can then be used elsewhere, whether it is for investing in stocks or for paying off loans.
Renters have limited responsibility when it comes to maintenance and repairs. Whether you have a leaking roof or a burst pipe, all you have to do is call the landlord. They will be the one to get in touch with contractors and oversee the work. All costs are typically also covered by the landlord, saving you a lot of money.
Access to special amenities like swimming pools and fitness centers usually come with monthly rent payments. Homeowners, meanwhile, have to shell out a lot of money to have these luxuries or pay substantial homeowners association fees.
Northern Utah offers lovely homes at affordable rates. Whether you are looking to buy or to rent, our expert team at Destination Properties can help you find the right property. Call us at 801.745.2009 or send us an email at info(at)destinationproperties(dotted)com.