Whether you’re renting or buying, transitioning into a new home can be a big step. From the moving costs to the costs associated with deposits, first and last months’ rent, and more, the whole process can be stressful and expensive. But before these worries pop into your mind, you may also be dealing with a tough decision: whether to buy or rent your next home. This can be an extremely hard decision to make and there are many factors that go into it. But by taking the time to think about your needs and understand the implications involved with either decision, you should have confidence as you make this next step in your life. In this post, we’ll discuss some key factors that you should think about as you’re trying to make the decision between buying or renting your next home.
Ready to Settle Down?
Buying a home is a huge step; therefore, you should only pursue purchasing a home if you’re ready to settle down. While you could always move and resell your home, or have it as a rental property, buying a home typically means that you plan to be in the area for quite some time. Do you like to move a lot? Not ready to settle in any specific location for a long period of time? If any of these are true, then renting is probably the best choice at this time.
The costs associated with maintenance are another consideration to make. When you’re renting a property, you simply contact your landlord if the dishwasher isn’t working or if the thermostat is on the fritz. But when you own a home, these costs are up to you. And if serious issues happen like plumbing issues, mold growth, or even a fire, then those costly repairs and added stress are in your hands. If you aren’t ready — both mentally and financially — to handle these maintenance tasks, then you may want to stick to renting.
Have you ever been renting a home, then felt that the home would be 10x better if there were some renovations? Unfortunately, your hands are tied when renting a home, and remodeling or add-ons are typically not allowed. But when you buy, you can make all the changes you want (unless there’s an issue with the HOA). This adds a certain level of flexibility to the homeowner and allows them to make any changes that they see fit.
Another factor to consider is your control of rent or mortgage payments. When you own a home, you accept the price of the home, then that price doesn’t change throughout the term of the loan. When you rent, the landlord can raise or lower the rent, which could leave you in a tough position. That being said, renting can be very beneficial, but the lack of financial control can be a huge disadvantage.
By focusing on the factors above, you can make an educated decision on if it makes sense to buy or rent your next home.