Still Renting?
Let's weigh the pros and cons in 2023
This is probably the most popular topic when it comes to the housing market. We don’t want to sound repetitive, but it’s important to revisit this often to keep some things in mind and help newcomers! Whether you’re moving out of your parent’s house or looking to relocate, the choice to rent or buy is a very important one. This month we’re going to take a moment to look at the current thoughts on renting versus owning.
First, let’s review the differences between renting and buying.
RENTING
Little Control over the property
Fewer expenses
Fewer expenses
Does not build equity
BUYING
Complete control over the property
More expenses
More expenses
Potential to build equity
Before we get into the pros and cons, let’s go into some details of the key differences here.
When you rent, you’re paying someone else for permission to live on their property. You will have no control over the property itself or the terms of your lease to live there. It’s important to realize that renting IS a good option, and not a waste of money until you’re ready to buy.
When renting, you’re sure of your monthly payments. Interest rates and home prices will not affect your monthly housing bill. Also, included in your down payment (security deposit) and monthly rent are many things including maintenance, repairs, property taxes, and more.
If you’re just starting out, renting might be the best option for the time being; it will give you time to save up for the many expenses associated with owning a home.
Buying a house has many benefits, but it also has its own drawbacks. Counter to renting, one of the biggest benefits of home ownership is just that – the sense of ownership.
When you buy property, it belongs to you and you only. There is a sense of stability that comes with this, as it’s more difficult for your home to be taken away.
There are, of course, some drawbacks. One of the biggest is the mortgage. Instead of paying rent, you’ll make a monthly mortgage payment. This is working to pay off the mortgage! The amount you pay can change due to rising mortgages and fluctuating interest rates.
Generally speaking, buying a house may not be the best move for those just starting out, especially considering the current environment with its rising prices and the unstable stock market.
Renting provides flexibility whereas owning provides complete control. Renting leaves you with fewer expenses and responsibilities, whereas buying will leave you with less flexibility in the mortgage process and many more expenses and responsibilities to upfit and upkeep your home. There is no opportunity to build equity in renting, but you can build a nest egg with equity around home ownership.
The best person to answer the question of renting versus buying is, you guessed it, YOU. There are so many factors that go into this decision that it’s crucial to take your time and weigh all of your options.
We’re here for you every step of the way of this journey, so reach out to us at Rapid Mortgage today if you need more information or have questions about the current housing market.
Copyright 2023 Rapid Mortgage Company
