Renting vs. Owning: What's the Best Option?
The eternal debate: Is it better to rent or to buy a house? Both options offer certain advantages over the other, and in this article we will go over them to help you make a decision that best suits your needs and lifestyle. Here’s the breakdown of renting vs. owning a place:
Benefits of Renting a Place
Pay less upfront
While it’s true that some landlords or property management companies may require you to pay for the first and last month of your rent upfront, moving into a new rented property is usually more affordable than buying one. Down payments could be as high as 20% of the property’s value, forcing those seeking to become homeowners to save a significant amount of money to pay upfront.
Relocating may be easier
If you follow a nomadic lifestyle or simply enjoying living in different areas every so often, renting is most likely the best option for you. When you buy a house and become homeowner, it is normally to stay put for several years, if not permanently.
Before choosing the best option for you, think about where you would want to stay for the next 10 to 15 years. If it’s not clear for you, then buying a place may not be the right solution for you at the moment.
One of the biggest advantages of renting vs. owning is that should anything in your house break or stop functioning properly, it is easy to have it taken care of.
Your landlord will be responsible for fixing any issues, and as a tenant, all you need to do is inform management of what needs to be fixed. When you’re a homeowner, you’ll be in charge of calling the plumber, electrician, or fixing things around the house by yourself.
Save on utilities
Depending on the place, all utilities could be included in the monthly rental rate. Generally speaking, however, you will mostly likely have to pay for electricity and gas. Regardless of what utilities you’ll be responsible for, the savings are considerable if compared to what you’d have to pay for becoming a homeowner.
Benefits of Buying a Home
There are some advantages that come to renting an apartment or house, but becoming a homeowner also has its own set of benefits that could suit you depending on your lifestyle.
A house built to your liking
As a homeowner, you make a big investment in a property that is yours. And, as such, you can remodel, rebuild, and turn your new house into the home of your dreams.
When you rent a place, there are certain limitations that come with it. Some landlords are more strict than others, but nothing compares to the freedom of choosing what you want your home exactly to look like.
You’re part of a community
As a homeowner, you’re likely to stay in the area for a long period of time, if not permanently. This allows you to become a part of a community with your neighbors. If stability is what you’re looking for, then buying a home could provide you with just that.
As mentioned above, if you’d rather be moving around until you’re set with one particular area, renting may be a better a better option.
When you rent an apartment or home, rates will increase over time and get more expensive every year. If you’re thinking long-term, becoming a homeowner may provide more predictability.
After you pay the initial down payment, you will be paying the same mortgage every year for the next 5 to 30 years, depending on your initial agreement.
Benefit from tax deductions
While there are interests associated with buying a home, one of the advantages of becoming a homeowner is that you get to deduct the interest in your tax return.
You can also claim discount points on your loan the same year you make the purchase. Each point you purchase could reduce your mortgage interest rate by 0.25%.
There are several factors you need to take into consideration before you decide whether renting is better than buying for you, or vice versa. Thankfully and regardless of the route you choose to go, selecting the best renter’s or homeowner’s insurance is easy thanks to Infinity Insurance. Call one of our friendly agents today at 1-800-INFINITY or visit our website to receive a free quote within minutes.
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