Home and Real Estate News

Renting vs. Buying Real Estate



When you are someone that is looking to purchase a piece of real estate, each decision
you make is an important one. Finding the right REALTOR® to help you make the best decision
is an important 1st step in the process of deciding whether renting or buying property is the best
move for you. Although the choice may seem simple, there are pros and cons to each one that
you should consider before making your final decision.
Renting
Renting property is a great way to still find housing and engulf yourself within a
community of people without taking on the responsibility that ownership entails. If you are
looking for something temporary or for something that you don’t feel tied down to, then renting
may be the option to go with. A benefit to renting is the flexibility for you to be able to move if
necessary. Additionally, if you are new to the area, renting allows you time to learn the
community prior to making a purchasing decision. For example, if your career has high job
transfer or you travel frequently or you want to learn where certain community or health services
are located, renting is a fantastic option.
Additionally, this option could potentially be less stressful on the renter, as once you have
satisfied the terms of your lease, you may pick up and go whenever you want. A property owner
must, with the help of a REALTOR®, go through all the steps necessary for a successful house
closing. Moreover, if you are an individual with moderate to low-income, there are rental
housing options within almost every community, and most REALTORS® are aware of these
affordable options for you and your family. Renting is also a great way to start building up good
references and can possibly help you save money should homeownership be a goal for you.

Another benefit to renting that ownership doesn’t contain is less maintenance costs. As a renter
the responsibility of most repairs falls to the landlord, not the tenant. A very important step to
renting is to always read through your lease before signing so that you understand all your
obligations as the renter as well as the landlord’s obligations.
Cons
On that note, renting does not give you full control of your living environment. In the
case that you are renting, the money you spend on living is not an investment like it would be if
you owned the property. The money you put in does not work for you overtime like it would if
you purchased that property. You cannot build equity and get money back in return once you
decide to leave that property like you would if you had ownership and decided to sell. You are
paying someone else to live there. Because of this, more risk could be involved as agreements
could change, rent could increase, and in the event of you violating your lease, your landlord
could evict you. Also, any changes you want to make to your living space to make it feel more
like home, must be approved. For example, if you wanted to paint your walls to be a bright
vibrant yellow that must be approved by your landlord assuming he/she will say yes.
Buying
Buying is a great option for someone who is looking to become part of a community long
term. It is a great way to start building a lifestyle for you and your family where you have more
options to choose where you live. Additionally, you have the freedom to make your home unique
to your liking and your personal decorative style. You have full freedom to paint your walls any
color you like. Decorate the rooms any way you like or remodel. All renovations are up to you
as the owner; as are the repairs and replacements of items like plumbing, air conditioning, roof

repair, unless covered by your homeowners’ insurance. Therefore, whenever possible try to put
something away for a rainy-day fund.
Unlike renting, your money is an investment when buying. You are building up equity for
as long as you live in your home. Additionally, unlike rent in which you cannot control the
monthly payment except inside a lease, should you have a mortgage payment, these payments
usually don’t change. Steady mortgage payments make it easy to budget for your cost of living
outside of any extra expenses you may run into such as repairs or renovations, hence why a
rainy-day fund is important. Unlike renting, your rent could increase with every lease renewal or
relocation. Moreover, on the topic of finances there are some tax benefits to owning property as
well. In some cases, you can deduct your mortgage interest payments whereas renting does not
share these same perks. In many ways, your money is working for you when you own a home.
Cons
Although, there are quite a few benefits to buying and owning property, with freedom
comes responsibility. Owning a home can entail quite a bit of maintenance. Even though you
may get a great deal on the actual purchase of the home, renovations could cost way more than
what is expected. It is when the unexpected happens and the buyer has no contingency fund, or
the repair is not covered by insurance that stressful situations can happen for the homeowner.
Most times when buying a home, it takes most, if not all, of the savings buyers have so please
make sure you have a home inspection when buying to understand and to plan for any future
repairs. It is always important to be prepared. This way your money is always working to your
benefit.

Lastly, it is important to note that your home is not a liquid asset. In other words, in the
event you need to move quickly, ownership could end up costing you time and money without a
well thought out plan, as relocating, even just across town, can be a long process. Additionally,
in many cases, people will sell a home to buy a home, and although you may sell quick, you may
not find a replacement for the home you sold quite as swiftly. Therefore, with a well-thought-out
plan and with the assistance of a trusted REALTOR® a move can occur, as stress-free as
possible.
Your personal situation will always determine which housing options are best for you and
your family. If the path is not clear write down your goals and then take some time to create your
own personal pros and cons list, talk it out with those close to you and even with your
REALTOR®. My wish for you is that whatever decision you make regarding Renting vs.
Buying, it is ultimately the best decision for you.

Whether buying or renting, we can help please call us at 352-686-0000.

Source:

Author: Marilyn Pearson-Adams and Co-Author : Lauren Felts

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