There are so many pros and cons to renting as opposed to buying a home. Everyone’s situation is unique and there are so many different things to consider when trying to make the decision about renting or owning. Renting should always be the default, just because owning a home is such a serious commitment. But there are some serious benefits to owning a home too, so when you are in the right place financially and professionally to buy a home, you should consider it. Here are some of the advantage and disadvantages to both.
- Pros: As a tenant, if you lock yourself out of your place, you can call your landlord to help. They may not be able to respond right away, but they will eventually be able to let you in. If you live in an apartment building, there is almost always someone who can let you back in immediately. You also have the flexibility of being able to move with short term notice. Renter’s insurance is significantly cheaper than homeowner’s insurance, and you can move around and try out different neighborhoods every year if you want.
- Cons: You are not building any equity, but rather, you are effectively paying someone else’s mortgage. Rent covers a roof over your head but it is also essentially pouring money down the drain. In most cases, a mortgage is not going to be much more than a monthly rent payment would be anyway.
- Pros: You are building equity by paying down your home, and keeping it in good condition helps ensure the value of the home stays high. You do not have control over the market but you do have control over the condition of your home and keeping it updated will help you in the long run. You can decorate any which way you please, if you break a window, scratch a floor, or a doorknob falls off, no one is going to deduct it from any security deposit. You get to make all of the decisions about your home.
- Cons: When you lock yourself out of the house, you have to call a locksmith. There are a variety of 24 hour locksmiths available, but unless you have some sort of other back up plan, you are stuck until they get there. Mobile Locksmith Pros are quick, reliable, and affordable, and hopefully you are in an area they cover. Otherwise, locking yourself out of your house means paying the price in time spent waiting as well as the bill for the services. Much like plumbing, roofing, and other serious maintenance issues, you will foot the bill completely for a locksmith. You also have to carry homeowner’s insurance which can be expensive, though once the mortgage is paid off you no longer have to have it (still recommended though). Owning a home also makes it harder to move on a whim, and while selling a house can sometimes be done quickly, there are no guarantees that it will happen fast enough for you to make a move you might want to.