No Strings Attached - In the event that you would have to unexpectedly move, it’s a bit easier to do so when renting. The reason being, you wouldn’t have to worry about selling your home and you could pick up your belongings and head out of town, just like that. The only catch…if you are in the middle of your lease, you’d have to buy it out or come to an agreement with your landlord on how to handle the situation. (maybe mention that you don’t have the option to stay once your lease is up if your landlord decides to sell the home, evict you, etc.)
Flexibility - Owning a home = you have the freedom to make it your own. Wait, I thought to rent I could kind of do that also? Well, you can to an extent, depending on your landlord. But, with owning a home, the freedom truly is yours. So, what does that mean exactly, you can make upgrades, paint the walls any color you want, have 10 animals inside, the choices are all left up to you.
Responsible for Break/Fix Issues - So, this could really go both ways when you’re a homeowner. You can look at it as a positive or a negative. For the glass half full approach, being responsible for break/fix issues is a great way to learn all kinds of new skills to put in your toolkit. Plus, it can feel really good to say you fixed something all on your own. For the glass half empty approach, some things you really won’t be able to fix or you don’t care to learn how to fix, so it can get rather costly having to hire someone to correct these issues. But, as a renter, you don’t have to worry about this at all. Just a quick phone call to your landlord and your problem should be taken care of.
Responsible for property taxes - This just comes with the territory. When you purchase a home, property taxes come with it, hand-and-hand. Thus, if you are looking to cut down on cost and not have this responsibility, then renting is your best bet.
Tax Benefits - This also just comes with the territory of purchasing a home, pretty great right! Basically, your mortgage interest and your property taxes are all deductible.
Builds Equity - You know the saying, “You have to spend money, to make money.” Well, that saying is spot on when you purchase a home because as you pay your mortgage each month, you’re increasing your equity. The price at which your house will sell minus what you still owe is what makes up your home equity. So, pay now and likely profit later.
At the Mercy of the Market - As a renter, you don’t really have to worry about this that much. However, it can affect the cost of rent prices, which can be rough if you’re on a really tight budget, or if you just simply don’t want to pay more to rent a home. But, as a homeowner, this is definitely something to consider. When you purchase a home, you hope that one day you will get a return on your investment, but the market ultimately determines that. However, the market is constantly changing from favorable to unfavorable - it just requires a little patience to get the outcome you’re looking for.
THINGS TO CONSIDER:
- How much is the home I’m interested in?
- Is that something I can afford?
- How long do I plan on staying there/here?
- What’s my ideal/target rent price?
- Do you enjoy lawn and garden work?
- Will your job require you to relocate?