Renting Vs. Buying: Which is Better?

Wondering if you should stop renting and buy a home instead? Here’s a simple comparison between renting and buying that would surely help you in making that big decision that could change your life forever!

Wealth Growth

Renting

In renting, giving your money to the landlord may mean you’re not investing in homeownership. When you pay your rent, that money is spent. Gone. Bye. Not returning. No equity. No rising property value. You’ll never see the money you pay again. Thus, you are just increasing your landlord’s wealth.

Buying

But when you pay your mortgage in purchasing a home of your own, you work toward full ownership. Thus, you are increasing your own wealth! Imagine this, when you buy your own home, you are turning your money into an investment. Nothing is ever wasted. In addition to that, your home will most likely appreciate over time – meaning it would increase in value depending on the market and how well you take care of it. What you buy for $200,000 today could sell for $260,000 down the road.

Payments

Renting

Rent rates will go up. Even if you found a killer deal in a hot area, inflation, competition, and rising property values will cause your rent to go up year after year. Wanna know why? Landlords are responding to market changes, inflation, and the costs of property maintenance. Also, the rent that you pay will have no tax deductions.

Buying

On the other hand, mortgage payments are locked in – meaning they won’t and they will never increase. How’s that sound? And if you’re paying off a mortgage, you’ll get to count your mortgage interest as a deduction when you file your tax return. Amazing, isn’t it?

Freedom

Renting

Even though you think hardwood floors would look great in the bathroom, your landlord may not approve of your renovation idea, especially since they’ll be the ones to pay. When you’re a renter, you have little say in what your place looks like.

Buying

On the other side, if you own your home, you can do whatever you’d like to it. If you want to paint it hot pink from top to bottom, no landlord can stop you! Not only that, but you also get to have your own privacy. No tenant would hear you even if you fight with your partner or having a good time.

Fees

Renting

When you are renting, you will likely pay not only for the rent payment but also for a security deposit. Not only those, expect also to pay for some fees like application fee, background check fee, move-in fees, HOA, and parking fees.

Buying

Contrarily, when you are buying or purchasing a home, you get to pay for a downpayment, origination fee, title-based fees, state recording fees, and a lot more.

Bottom Line

Deciding whether or not to buy a house isn’t an easy choice. That’s why it’s smart to partner with a pro who can help you navigate your options.

If you’re looking for a local real estate agent who will offer you trustworthy advice no matter your budget, reach out to us at 541-306-3139. We understand the path that you’re on and we will never push you to overspend on a house just for a bigger commission check.

We’d love to help you make that American Dream of yours come true! Call us now and we’ll get in touch right away.