Difference between Renting and Owning
Choosing between renting and owning your own house is a tough decision. Renting is usually more affordable than buying, but the security of owning something can be appealing as well. The primary difference between renting and buying comes down to how much you want to invest in the property – and that depends on your life goals and finances.
To help you decide which is better for you, we’re going to go over some of the pros and cons of both options.
|Renting Pros||Renting Cons|
|1. You don’t need to make investments. You can rent something pretty cheap, with the main costs being your security deposit and monthly rent payments.||1. You may not get the best deal when it comes to repairs and maintenance.|
|2. You’ll never have to deal with maintenance or repairs. While renting, you don’t have to worry about the upkeep you’re getting from the landlord.||2. You’ll never feel like a homeowner. When you rent, it’s easy and manageable and doesn’t feel like ownership at all.|
|Owning Pros||Owning cons|
|1. You can feel great about owning a home since you play an active role in the property and its upkeep.||1. You often have to make a large purchase upfront, which can add value to your finances during the beginning stages.|
|2. You’ll have the opportunity to invest in something that will benefit your future family and living expenses, which can be a feeling of accomplishment.||2. You may need to make some maintenance or repairs from time to time, but that is less of a problem with renting since landlords are responsible for this anyway.|
Your decision on which option to choose is not just about money. It is also about what you think is best for your life. While renting can be more appealing to some, it’s to consider whether or not you like the idea of renting versus owning.
To help with this, here are some tips for choosing between renting and owning:
- Do your research on the landlord before you move in.
- Look at potential property values.
- Read through lease terms before signing one.
- Find out how long it will take for you to pay off your debt if you choose to rent instead of buy.