Renting Vs Buying: Weighing the Pros and Cons
The decision whether to buy a home in DeRidder or not comes down to your personal circumstances and what your preferences are. The experts at LA-based EXIT Real Estate Consultants say that for some people buying a home is a dream and they would not even contemplate renting. For others though, renting seems like the obvious solution, especially when considering the amount of money that is required to purchase a home. But before you decide for yourself, let us take a look at the pros and cons of both renting and buying.
Renting a Home
When you rent a home, you have much more flexibility. Those who are renting find it easier to move home should the need arise. They do not have to worry about waiting for their house to sell or getting stuck in a chain of buyers and sellers.
It is also worth noting that the process of renting is much quicker than buying, so you can move from one home to another in a short space of time. Furthermore, when you rent, you do not have to worry about the cost of upkeep and maintenance of the property as this is (usually) the landlord’s responsibility.
The upfront costs of renting are significantly lower than those associated with buying a home. For example, when you rent, you might only need a months’ rent in advance plus the same amount as a deposit.
The biggest disadvantage of renting is that you are basically paying someone else’s mortgage for them. Yes, you are paying a price for the privilege of having somewhere to live, but when you buy a property yes you are living there, but you are also paying towards an asset.
How quickly you can move from a rented property depends on the lease you have. So, while moving is usually easier when you rent, you might be stuck waiting for your lease to come to an end before you can move. Otherwise you may have to pay a penalty for breaking the contract with the landlord.
Another disadvantage with renting is that the property is not yours, so there may be restrictions in place in terms of how it is decorated. This can make it harder to make it feel like a home.
Buying a Home
When you buy a home, you are free to make it your own. You can update it how you wish, and you will not need permission to make minor repairs or upgrades.
You might also end up paying less for a mortgage than you would on rent. Plus, once your mortgage is finished your payments will stop, meaning that you will have no monthly payment and an asset worth hundreds of thousands of dollars. Most homes will appreciate in value over time, especially if they are looked after.
When you buy a property, you are responsible for the maintenance and upkeep of it. Moreover, you are likely to need much more money upfront than you would if you were renting. For example, you will need the down payment as well as closing costs and moving in funds. Additionally, it is harder to just up and move if you need to.
The decision of whether to rent or buy a home depends on your own personal circumstances and preferences. If you have the funds and have found a home that you love, then buying makes sense. Nonetheless, if you are not ready to settle down in one area, it might be better to rent for a bit until you find your dream, forever home.