Renting or Buying? It’s an important life question that people must face when making one of the largest financial decisions during their life. When deciding what the best option is for you, it’s best to do your research and there are pros and cons to both. To help understand which option is best for you, let’s go through a few common myths around renting vs buying.
“If you rent, you’re throwing money away”
When renting, you’re paying your landlord and if you choose to own a home then you’re giving mortgage payments to your bank, either way, you’re paying money to live somewhere. Homeownership may seem attractive with smaller monthly mortgage payments than monthly rent, but there are other costs that come with owning a home that don’t with renting. At a glance, homeowners must pay property taxes, home maintenance and repairs, utilities, insurance, and don’t forget the interest on their mortgage payment. Although when purchasing your own home, you’ll be building your own equity instead of your landlord’s.
“Renting is cheaper since you don’t have to pay for home maintenance and repairs”
There is truth to this statement. You don’t have to pay for things like a busted roof, or leaking pipes, but think about this: your monthly mortgage payment for owning a home is locked in at a set amount. When renting, monthly payments can rise due to the market value in your area. If rents are rising faster than your income, buying might be a more attractive option.
It’s easy to believe that these blanket statements might apply to you, but in reality, they don’t. You should go through the list of pros and cons for each depending on your lifestyle and goals. A helpful tip is doing some market research and figure out the math based on your own circumstances and remember that if you decide you’d like to become a homeowner, know that even a single person can do it.
Talk with one of our Polaris agents today to help guide you through your decision-making process.