Renting versus buying is a big decision and there are pros and cons to each of option. The question of owning a home or renting isn’t as straightforward as it might first appear. The deciding factor for you could come down to something other than money.
Here are a few things to consider:
Buying Pros
- No landlord to answer to
- May build Equity and credit
- More stability
- Possible tax benefit
- Can improve or upgrade home to your taste
Buying Cons
- Requires substantial money, paperwork upfront
- Could lose money if home values decline
- Extra expenses besides a mortgage payment
- Rising home prices and low inventory in many markets
- Responsible for repairs and remodeling
Renting Pros
- If you were upfront cost and paperwork
- Freedom to move and be mobile
- Not responsible for maintenance and repairs
- Build credit if your landlord reports rent payments to the credit bureau‘s
- No property tax bills
Renting Cons
- The landlord can raise the rent or sell the property
- Choices may be limited depending on vacancies
- Might have to move multiple times
- Don’t build equity
- No tax benefits
There are different costs associated with renting versus buying, and they depend heavily on where you live in the local housing market.
Do the necessary research in your area and make a decision that’s best for you and your family.
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