Just For Buyers Home Buyers Agency: To Buy or Rent?
Finding a place to live ultimately comes down to answering one vital question – to buy or to rent. There are supporting reasons why each is a viable option, but how can you determine which is best for your lifestyle?
At Just For Buyers, we’re a home buyer’s agency that specializes in helping home seekers find their dream homes. But, we understand buying a home is not for everybody. Here, we provide the pros and cons of buying versus renting so you can make the most informed decision regarding your future home.
The Pros of Renting
- Lower initial investment. Renters usually have to place a deposit equal to the value of the first and last month’s rent while home buyers need anywhere from five to ten times that amount in order to move into their new home.
- Renters have fewer responsibilities and obligations with respect to where they are living.
- Renters have more flexibility for future moves. Most rental agreements are short-term contracts, meaning if the renter wants to move, all they have to do is wait until their agreement is up and they can move unrestricted. Home buyers usually need to sell their homes prior to moving or be forced to cover two mortgages until their previous property sells.
- Insurance costs are lower. A renter only has to insure their personal property, not the actual premises where they live. As a result, the cost for renter’s insurance is significantly lower than homeowner’s insurance.
- Renters don’t have to worry about property taxes.
The Cons of Renting
- Renting places restrictions on the renter. Renters often have to follow certain rules and regulations set by their landlords or property management firms. This can affect everything from their ability to own pets to the color they can paint their walls.
- Money paid in rent does not go towards equity.
- Renters must depend on their landlord to keep the property maintained. Depending on the landlord’s commitment to property and financial resources, that may or may not be to the renter’s standards.
- Renters more often have to deal with certain challenges like noises, odors, and attitudes of their neighbors, who usually live in very close proximity either above, below, next to, or across from each other.
The Pros of Buying
- Home buyers enjoy living in the comfort and privacy of their own homes.
- Mortgage payments help build equity, making buying a home a solid financial investment.
- In some cases, buying a home can provide the buyer with certain tax benefits.
- Home buyers usually have fewer restrictions and more control and freedom over their living situation.
- Mortgage payments, when made on time, can help build the home buyer’s credit.
- Appreciation in value. Historically, the numbers of years that real estate values have increased outnumber those when it has decreased as a home appreciates in value; it has a positive effect on your net worth.
The Cons of Buying
- Buying a home requires a sizeable initial investment.
- Buying a home is a long-term commitment. In most cases, the home buyer needs to keep the property at least three to five years before they can make up the costs associated with buying the home.
- Hidden surprises. Not all home sellers are up-front with agents or buyers and even with a home inspection, the buyer can be in for some costly surprises.
- Home values fluctuate. Should the real estate market take a dive, the value of the home could plummet leaving the home buyer with a home that’s worth less than what they owe.
- Once a home buyer purchases a property, their ability to move is usually more restricted.
Let Our Home Buyer’s Agency Help You Decide
If you are unsure about whether to buy or rent, give our home buyer’s agency a call today at 910-444-2851. One of our licensed buyer’s agents will take the time necessary to help you determine the best route to take.