Renting a home is something most people do when they first move out of their parent’s home. Renting provides flexibility if they’re not sure where they want to live and it can be easier to rent instead of purchasing a home. However, at some point, the person might consider the differences between buying a home vs. renting and want to think about which one is right for them. Today, it often makes more sense to buy instead of rent, but this does depend on the person and their goals.
Pros and Cons for Deciding to Rent a Home
The decision to rent a home can be the right one in a few different situations. If someone is not sure they want to stay in the city for at least a few years, it might be better to rent so they can move easier when they want to try a new city. In most cases, renting a home also means the person does not have to do any repairs on their own or pay for the cost of the repairs, which can make it easier to stick with a budget and save up an emergency fund.
There are also downsides to renting instead of buying. For instance, those who rent might have to find a new home immediately if they find out their lease will not be renewed. They might have trouble getting the necessary repairs done quickly, depending on their landlord and what the issue is.
Pros and Cons for Deciding to Buy a Home
For many people, buying a home is the right decision when they plan to live in their current area for at least a few years. The new homeowner will be able to decorate the home and yard however they want, for the most part, and won’t have to worry about whether hanging a photo is going to cause a hole in the wall they’ll be required to fix before they move.
A homeowner can’t pack up and leave as easily as a renter, but they will have built up equity in their home if they decide to sell it and move to a new place. They’ll also need to do any repairs on their own, but they can save for those repairs to make sure they can afford them when needed. Plus, they don’t have to contact anyone else to ask for repairs to be made.
Which is the Better Decision?
There are pros or cons for anyone to consider when they’re wondering, should i buy or rent? They’ll want to make sure they think about where they want to be in the next few years, whether they can handle doing repairs on their own, and whether they want to use their money to build equity or if they’d rather have someone else handle the expenses of home repair for them. For the most part, though, those who can rent can buy, so the decision is not necessarily about money, but about what they want.
If you’ve been renting a home and you have found a city you want to settle down in, at least for a few years, you might want to consider buying your first home instead of continuing to rent. In most cases, if you can rent you can buy. Make sure you look into the pros and cons of buying a home vs. renting and apply them to your current situation to make sure you’re making the right decision for you now and in the future.