As the housing market is ever-changing, deciding to rent or buy a home can seem confusing and stressful. As it’s an important decision that will affect your lifestyle, goals, and finances, it’s essential to consider the pros and cons of both options. Both require a certain degree of effort to maintain and a regular income to afford the associated costs and payments. To help make the decision easier for you, we’ve put together the benefits and drawbacks of both options to help you decide whether renting or buying a home is the right option.
Renting a Home
When you rent a home or condominium, you know the exact amount of all your monthly housing costs as indicated on your lease. Renting a property doesn’t come with all the responsibilities associated with homeownership, and you aren’t necessarily tied down to your property. If there’s a chance you’ll be relocating in the future, whether a job change or moving for personal reasons, renting is easier as you have less responsibility leaving the property.
When you are a renter, there are a variety of costs and concerns that the leaser handles, not you. These include maintenance and repairs, property taxes, home insurance, HOA fees, and other expenses. While this reduces your stress during an emergency, you aren’t in control of the situation, so you’re waiting for the landlord to figure things out. You’re also limited on any changes or renovations you wish to make, as it’s the landlord’s property, not yours.
Owning a Home
As a homeowner, the property is entirely yours: this means you can do with it as you please, including upgrading, remodeling, and refreshing the space. Financially, there are obvious benefits to owning your own home: writing off a portion of your mortgage payment as a tax deduction and building equity (the market value of your home minus what you owe on it), which can increase your wealth and savings. Even if you don’t make any improvements, you’ll get more for the home than you paid since real estate appreciates in value over the years.
On the other hand, owning a home is more complicated and expensive than renting. You’ll have to put down a considerable sum of money on the down payment of a home, so you need to plan and save money. All costs are your responsibility: upkeep and maintenance, mortgage and insurance payments, and property fees. Any accidents or problems that arise are your responsibility to solve and pay for. Homeownership is an investment; like all investments, it can go up or down in value.
Which is Better?
The answer to this question ultimately depends on your personal goals, lifestyle, finances, and work situation. There are also external factors to contemplate, such as inflation, mortgage interest rates, returns on investment, and the housing market’s direction. You will need to weigh out the costs and benefits of each and decide what’s best for you.
If you are leaning towards renting, there are several options here in Addison. Those looking for an apartment should look at Vitruvian West and AMLI Addison. Both properties offer studio, one-bedroom, and two-bedroom layouts. If you prefer renting a home, head to Realtor.com for various choices. Individuals wanting to buy a home should talk to Ebby Holiday realtor Taylor Walcik. Walcik holds a Broker’s License and is a Certified Residential Specialist, a distinction that fewer than 3% of all real estate professionals have.