Renting vs Buying: How to Decide What is Right for Your Family

Everyone dreams of someday owning their own home. Before you dive into the commitment of homeownership, it’s important to look into home loan rates to make sure that you’re finding the right type of mortgage for your budget. You’ll typically be looking at a 15-year or 30-year mortgage, so make sure that you’re ready for the long-term commitment of owning a home. You’ll also want to consider the pros and cons associated with owning your home as well. Here are a few to get you started.

Buying a Home

         Pro: More Room to Customize

If you’re looking for the ability to customize your home to fit your personality, buying allows you the freedom to do so. You can knock down walls, install new flooring, or renovate a bathroom whenever you want because it’s your home. Owning your home also makes it easier to purchase new furniture as you don’t have to worry about moving it as often as you would if you’re renting.

         Con: Closing Costs

Closing costs cover processing fees associated with purchasing a home and typically cost around 2 – 5% of the purchase price. When you combine that with a down payment, you have one hefty bill on your hands. Make sure that you have these funds available to you before you make the commitment of buying a home.

         Pro: Your Home’s Value Could Increase

Whether it be from your own additions and renovations, or the market shifting in your favor, the value of your home could increase over time. This is great if you choose to resell your home down the road, and will put extra money back in your pocket. However, this pro also comes with a con as the opposite could happen and your home’s value may decrease over time. It’s important to do your research when choosing a location to buy to avoid losing money long term.

         Con: Higher Maintenance Costs

When you own your home, you’re responsible for all of the maintenance costs. These can add up quite fast especially if you’re planning on completing any remodeling projects or major renovations. You’ll also have to factor in the cost of things such as lawn care, landscaping, appliance issues, plumbing, and an endless list of other costs that eventually will arise. It’s crucial if you choose to own your home that you’re financially prepared to take on these costs as they come up.

Renting a Home

Buying a home isn’t for everyone, and there are many different reasons why that might be. It’s important that you take some time to figure out what’s important to you and your family before committing to either buying a home or renting. If your goal is to live in a big city where the cost of purchasing a home might not be anywhere near your budget, renting might be the best solution for you. Make sure that you research the pros and cons of renting before making a decision.

         Pro: Freedom to Move More Often

Do you have a job that requires you to relocate often? Are you unsure of where you’d like to lay down some roots? Renting is probably your best option. A yearly lease or even a month-to-month lease gives you the freedom to explore different locations to find which is the best fit for your lifestyle. You can also choose to rent your furniture to make the moving process even easier when it’s time to relocate.

         Con: You’re Not Building Equity

Home equity is the difference between what you owe on your mortgage and the value of your home. The more equity you have in your home, the easier you’re able to utilize things such as a home equity loan to pay for large ticket items. Unfortunately, when you’re renting, your rent is paying for someone else to build equity in their home rather than your own.

         Pro: Lower Maintenance Costs

As a renter, you’re typically not responsible for any of the maintenance costs of the property because you don’t own it. You won’t need to worry about owning a lawnmower or snowblower to keep the property tidy during the different seasons. You also won’t be responsible if an appliance breaks down or there’s a leak in the roof. These costs can add up to quite a bit of money over time, so it’s nice to not have to worry about them.

         Con: Your Rent Might Go Up

An unfortunate downside to renting is that your landlord can choose to increase your rent when it’s time to renew your lease. As the owners of the property, the cost that they charge for rent is up to their discretion. This increase in cost could potentially not fit within your current budget and force you to look elsewhere for housing that you can afford more comfortably.

Choosing to rent or buy a home is a huge decision that’ll impact you and your family for years to come. What’s most important is that you do your research and make the choice that best fits your family’s budget and lifestyle.

Whether You’re Renting or Buying Furnish Your Space with CORT Furniture Outlet

If you’re ready to update your space after moving, head to CORT Furniture Outlet to find all of your furniture needs. With our expansive and constantly changing inventory, you can purchase furniture you love and take it home with you the same day. Stop by your nearest CORT Furniture Outlet or shop online today!