Are you trying to decide if now is the right time to buy or if renting is a better option? When trying to decide between buying and selling it is beneficial to look at the benefits that each option can offer. In this way, you can better determine which is right for you.
Pro of Buying: Building Equity
One benefit to purchasing a home is that it allows you to build equity over time. With a portion of your monthly mortgage loan payment going toward paying down the principal, you build equity every time you make a payment. Not only does this give you more potential purchasing power as you build more equity, but it also means you are likely to get your money back if you ever decide to sell. Paying rent, on the other hand, does nothing toward helping to secure your financial future.
Pro of Renting: Ease of Relocation
Of course, while buying a home may build equity, it also makes it more difficult to move if you decide the location or property is no longer right for you. As a renter, you can simply move when your lease is up or possibly even break your lease early in order to relocate. With a home, on the other hand, you need to sell the home before you move or face the possibility of continuing to pay on the mortgage loan while also paying on your new home after you move.
Pro of Buying: Make it Your Own
When you purchase a home, you have the ability to truly make it suit your lifestyle and preferences. While you may be somewhat limited in your choices if you live in a suburb with strict neighborhood guidelines, you will still have far more flexibility in terms of making modifications to a home that you own as opposed to a home that you rent.
Pro of Renting: No Maintenance Expectations
As a homeowner, you are completely responsible for maintaining the property and making any necessary repairs. When you rent, on the other hand, you are typically free from having to perform routine maintenance tasks such as maintaining the yard and changing central air filters. In addition, you do not have to worry about coming up with the extra money to handle unexpected repairs and other issues that homeowners may have to face.
Pro of Buying: A Sense of Belonging
As a renter, it can sometimes be difficult to develop a real sense of belonging in a community. Even with a lease, you know there is always the possibility that the property will no longer be available when the lease is up. Similarly, your neighbors are likely to view you as a transient occupant and, therefore, may not fully embrace you as a part of the community. When you purchase a property, it shows that you are in for the long-haul and that the community is a place where you feel you belong.
By taking these pros of buying versus the pros of renting into consideration, you will be sure to be able to select the option that is best suited to you and your needs.