When deciding to move into a new home, figuring out if you’re going to be a renter or an owner is an important decision to make. This is also going to be one of the first choices you make as it helps filter out the market. Renting vs. buying affects much more than the type of house that is available on the market though. There are pros and cons to both of these home decisions, and before deciding to do either, it is important to educate yourself. At Raleigh Cary Realty, we want all our clients to be well-informed homeowners or renters.
Renting vs. buying:
- Pros: When renting a home, one of the biggest pros to it is that you are not financially reliable for most of the potential damages that could happen. A water line bursts? Your landlord will typically take care of that, and you do not have to worry about fixing the issue. This allows you to spend your days and weekends doing what you want to do instead of projects around the house.
- Cons: When renting, you are subject to rent increases and possible eviction if any part of the lease was violated. You are basically helping pay for someone else’s home without building any equity of your own. You also are not able to write off any interest paid for your home for tax purposes. This can be stressful financially if a higher rent price cannot be afforded. You are not in control of when or how things are fixed and if in a timely manner.
- Pros: One of the biggest pros to owning a house over renting is that it is a financial investment. Typically (when the markets are behaving well), your home will increase in value over the years allowing for you to sell it at a larger sum down the road when you are ready to move. The graph to the right shows the difference in family wealth between the typical homeowner and renter.
- Cons: A big con to owning a home are all the unexpected fees and issues that can come up with it. Not only are there taxes, insurance, water and sewage services, but if anything unexpected happens to your home, that financial burden lies on you and not a landlord. If you are unsure of the city or place you live in, you may not want to buy right away as you could lose money if later on you needed to sell quickly.
Overall, the decision to rent or buy all depends on the individual and their financial preferences. Each person is going to have a better option for them. If you still need help making that decision, contact one of our agents today. We are here to help you navigate your housing journey.