Whether owning or renting is a smarter decision is a long-standing debate. Both have their advantages and disadvantages, and the fact remains that different people could benefit more from either choice. For some, renting is the better decision, and for others, owning a home is the most beneficial route to take.
If you’re not sure which option might be right for you and your family, here are the four biggest factors to consider when deciding between renting vs owning a home.
Renting vs Owning a Home
There are many factors to consider when deciding between renting vs owning a home. These are just a few!
Of course, one of the most important things to consider is your finances and budget. Renting and buying differ majorly in this aspect. When buying a home, you’ll need a sizable down payment which some people might not have access to in the short term – making rent the better option at least for the time being.
Buying a home can be a great idea for those who can afford a down payment and are looking to their financial future. Of course, where your looking to buy or rent can greatly impact the cost. Moving to the east coast? North Carolina real estate is relatively affordable and the area is popular amongst young and growing families. Want to be in the Midwest? The cost to rent varies greatly in St. Louis neighborhoods and even that is impacted on the best high schools in Missouri. Looking for west coast living? Be sure to research the most affordable cities on the West Coast!
If you’re looking for your dream home, owning will always be the better choice. When you’re renting, you’re limited to quick, easy and impermanent rental-friendly home improvements, and you won’t be able to do renovations or make any serious changes if you’re not happy with the home.
When you own your own property, most decisions are yours to make and you can mold your home to fit your every need. The drawback of this is that you’re entirely financially responsible for all home improvements, repairs and annual maintenance. On the other hand, when you’re renting, any upgrades and repairs will be the landlord’s responsibility — and timeline.
If you’re homeschooling in Missouri, like me, be sure to check out FHE for the latest in Missouri homeschool legislation. Not moving within Missouri? It’s always best to research the homeschool laws by state, on the HSLDA site, before you say yes to the address.
A serious advantage of owning your own home is the stability that comes with the decision. You’ll never need to worry about changes in the financing or having to leave your home at short notice.
On the other hand, renting a home is not so stable. You might have to leave at the end of your lease, and depending on your lease agreement, your landlord could ask you to evacuate at a month’s notice. You’ll also need to account for annual increases in rent. If you can’t afford an increase, you might need to try to negotiate rent increases, and if your landlord doesn’t agree to your requests, you might be forced to find a new home that you can afford.
Finally, you’ll need to look at your own future plans. If you wish to travel, relocate or if you’re unsure about what your future holds, renting is a much better choice since you’re not tied down physically or financially.
If you’re growing a family and wish to settle down, owning a home is a tempting choice – plus you’ll have a home to leave to your children in the future, which will benefit them in their adult lives once you are gone.