Renting vs. buying
When it comes to deciding whether to rent or buy, it can be tricky to decide which option is best for you. Buying a home is a goal many people have, but sometimes the timing might not be right or you’re trying to save more. There is no right or wrong answer when it comes to renting or buying. You know what’s right for you and your financial situation. Thankfully, resources online can help you make the best decision for you!
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If you’re thinking of renting, here are a few things to consider.
- Relocation. When renting, it’s easier to relocate more often.
- No down payment. Renting an apartment or house doesn’t require a large down payment. Most apartments require a security deposit, but these are often less than a down payment.
- Low maintenance. One of the major perks of renting is that you aren’t responsible for expensive repairs.
- Rent fluctuation. Your rent could increase from year to year.
- Equity. You don’t build equity on the house or apartment that you’re renting.
If you think buying a home might be the best option for you, here are some things to consider.
- Customization. You have the freedom to customize your living space the way you want. If you have a homeowners association (HOA), some customizations may require approval from the HOA.
- Equity. As you pay down your mortgage, you build equity in your home. That means you can use your equity for home equity loans or lines of credit.
- Down payments. You’ve probably heard you should make a down payment of 20%. However, there are a lot of options for mortgages that don’t require 20% down. While low down payments make homebuying easier, closing on a house is typically more expensive than a security deposit.
- Counteroffers. When buying a home, it’s not as easy as signing a lease agreement. You have to submit your offer to the seller. Sometimes, there might be multiple offers on the table. This can make the buying process lengthy.
- Unexpected repairs. When buying a home, it’s recommended that you have a home inspection be done prior to closing. This can eliminate the chances of potential hidden costs.
Want to learn more about renting vs. homebuying? Check out Zogo and explore the ‘Buy a house/Rent an apartment’ topic!