The Battle Between Renting and Buying: Who Wins?

Stop scrolling on Zillow and read this!!!

Now that I have your attention, it's time to fill the space between finding your picture perfect home, and deciding to make the move from renting to buying. There are many different factors to consider before making a decision on what makes sense for you. Let's dive deep into your lifestyle, finances, and future plans.

But first, renting:

The greatest strength about renting versus buying is the lack of commitment having to be made. I'll be the first one to agree that commitments can be hard! Renting gives you the flexibility to move whenever (or almost whenever... sometimes those leases can be a bit sticky), you are free from the headache and responsibility of maintenance on the property, and you are not being confined to a mortgage. This sounds amazing... right? 

But, wherever there are advantages, come drawbacks. You truly don't have any interest or involvement in where your money is going, and can not build a penny of home equity. With that being said, your money is being completely controlled by someone else...yikes! Another scary truth is that your rent is not set in stone and can change at any time. It may be hard to get that “homey” feeling when you truly can't be free in your own home when you can’t make any modification to express your true self. Nonetheless, renting can be great for those who aren't quite ready to be in a long term commitment and to settle down.

Let's talk about home buying;

Equity, equity, equity. One of the greatest advantages in home buying is the personal growth and potential in something that you can truly call yours. Having a stake in something can be rewarding especially if it can provide generational wealth. You have the freedom to completely personalize and modify your home until it seems fit for you. Having a home comes a huge financial obligation, but in some cases monthly mortgage payment can cost the same as monthly rent, and even less than rent.

On the contrary, being a homeowner is highly rewarding, but it comes with certain responsibilities and expenses that not everyone is ready for. It takes time, effort, and financial planning. Keep in mind that you are solely responsible for the wear and tear on your house. You will have upfront costs, monthly mortgage payment, plus property taxes & fees. The positive side to paying taxes and a mortgage is that your taxes and interest from your mortgage payment are tax deductible on your income tax, so your get more money back! The current market condition also plays a big role in home buying decisions ( don't worry, you have me to walk you through the market). If you are ready for the commitment and can financially afford the homeowner costs, it can be a well worthwhile investment.

Still on the fence?

Ask yourself this:

How long do you plan to stay? Are you ready to be a homeowner? Have you saved enough money to buy a home? Can you afford the additional costs of homeownership? 

The bottom line is that you are responsible for figuring out whether buying or renting financially suits you; but as a Realtor it is my pleasure to help you navigate through the home buying process, alleviate stress, and to help you figure out where you stand. 

Never hesitate to reach out to me! Until the next blog post,

Francesca