Renting or Buying:  What’s Right For You?

Is it better to rent or buy a home?   Unfortunately,  there is no “right” answer —  rather, it depends on many factors and differs from person to person.   Regardless, it is a major decision that warrants careful thought.  

Grace Tirrito, sales associate with ERA Justin Realty, suggests that you make a list of your priorities, financial goals, and personal preferences  when making the decision to rent or buy.  “Despite popular belief, renting doesn’t always mean that you’re ‘throwing away money’ and buying doesn’t always ‘build wealth’,” she explains.  “In reality, the decision is much more complex.”  

Why RENT?

Flexibility – Do you have a job that requires you to move around every few years?  Are you not sure about which neighborhood you want to live in?   “Renting a home makes it much easier to move because you don’t have to go through the home selling process,” says Tirrito.  “if you need the flexibility to move easily, then renting is the best choice for you.”  

Fixed Monthly Expenses – When renting a home, your monthly expenses are fairly fixed — you know what you owe each month for rent, utilities, and renter’s insurance.  When you own a home, there’s the chance for an unexpected expense — like replacing the furnace, or repairing the roof.  

Limited Maintenance – Depending on your lease, most maintenance is the landlord’s responsibility.  You might need to mow the lawn, but you’re generally not responsible for major home repairs or maintenance.

Biggest con when renting?   Your landlord is in charge.   You may be faced with a rent increase, limitations on what changes you can make to the interior, or you may be asked to leave when the lease is up.

Reasons To BUY 

Build Equity – Buying a home is a financial investment and every time you make a mortgage payment you are building equity in that investment.  You can turn that equity into cash if you sell the home or refinance it.

Stability and Community – Owning a home and being connected to a community has many benefits for those looking to raise a family and establish long term relationships with friends. 

Freedom – Owning your own home gives you the control to update and renovate as you see fit.  Update that kitchen, refinish the basement, or add a backyard pool.   

Whether to rent or buy a home is a major decision. Some people buy homes when financially they’d be better off renting because home ownership is important to them.  Conversely, some people are habitual renters because they value flexibility, even though they’d amass more equity long term if they bought a home.  If you are facing this decision, working with a trusted professional like Grace Tirrito can help.   To connect with Grace, or any of our experienced Real Estate Agents, call 201.939.7500.