Pros and Cons of Renting vs. Buying a House

You're in the process of moving out of your childhood home. Now, the decision is to try and decide if you want to rent or buy a house. Before you schedule your move with Black Tie Moving, let's get into some of the pros and cons of renting vs. buying a house.

Pros of Buying a House

Stability

One of the most wonderful benefits of buying a house is the stability that it offers. Once you purchase your home, it's not going anywhere (as long as you make your payments)! This stability offers you peace of mind.

Builds Equity

Home ownership allows you to build equity. Once you purchase a home, this property becomes a valuable asset of yours. Oftentimes, your home value will increase, which means that you're essentially making money off of it in the long run. Each payment you make goes towards your own investment - unlike renting.

Cons of Buying a House

Home Maintenance

A downside of buying a house is that you'll be responsible for any home maintenance or repairs needed. These expenses can easily add up over time, and it will fall on you to take care and manage them. This could be as small as hiring a lawn service to keep your grass cut or more expensive matters such as a burst pipe.

Limits Flexibility

Another con of owning a home is that it limits your flexibility. If you decide you want to move, it won't be as easy as getting up and buying a new home. You'll most likely have to sell your home first before being able to afford a new one. The process of selling your home could take months, so it's important to keep this in mind.

Pros of Renting

No Maintenance

A great benefit about renting is that you aren't responsible for any maintenance or repairs to your rental house. These expenses are up to the owner of the rental property to handle. There's no need to worry about any unexpected events that may pop up, as it will be the property owner's responsibility.

Low Costs Upfront

Another great advantage of renting is that there are lower costs upfront than if you were to purchase your home. Purchasing a house racks up a lot of upfront expenses like a down payment and closing costs. With rental properties, the only upfront cost is usually a small deposit.

Flexibility

If you like to travel or move around a lot, a rental property is the way to go. Renting your home affords you much more flexibility than buying a house. Although you'll usually have a lease, you'll be free to move after your contract has ended.

Cons of Renting

No Equity Building

Unlike purchasing your home, if you decide to rent - you won't be getting any of the money you put towards it back. There's no equity building when it comes to renting, which can be one of the biggest downsides of it.

Little Stability

Renting your home offers less stability than if you were to buy your house. If you're renting, you're at the mercy of the property owners. This means that once your lease is up, they have the decision to not allow you to re-lease their property.