To Rent A House or To Buy A House? – That Is the Question!

To Rent A House or To Buy A House? – That Is the Question!


buy a houseConfused about the rent-versus-buy a house decision? Well, both have upsides and drawbacks. In the end, the answer always depends on several factors, including your finances, your long-term plans and the real estate market in your area.  Your house is one key aspect of your financial lives, whether living as a single person or with a family. With these basic criteria, here are some factors to consider to help you decide whether to rent or buy a house for you or your family:

  • Affordability versus your personal savings
  • Timeframe plan to stay or live in the house
  • Stability and Flexibility to move around
  • Sustainability on maintenance and repairs
  • Your financial, career and family goals

 

 

 

Given the above factors, we enumerated some Advantages and Disadvantages of Renting vs Buying a house:

 

BUYING:

Advantages:

May build equity and credit

No landlord conflicts

More stability (especially with schools)

Possible tax benefits

Can improve or upgrade home to your lifestyle

Property tax bills

Disadvantages:

Requires substantial money, paperwork upfront

Could lose money if home values decline

Extra expenses beyond mortgage payments

Rising home prices and low inventory in many markets

Responsible for repairs, remodeling

 

RENTING:

Advantages:

Fewer upfront costs and paperwork

Freedom to be more mobile

Not responsible for maintenance, repairs

No need to worry about falling home values

Built credit (if your landlord reports rent payments to the credit bureaus)

No property tax bills

 

Disadvantages:

Landlord can raise rent or sell the property

Choices may be limited depending on vacancies

Might have to move multiple times

Don’t build equity

No tax benefits

 

Buying a home can be a great investment. If home prices in your area have been rising, buying now can help you stay in a neighborhood that you might otherwise be priced out of in a few years.  And even if you don’t end up staying long term, a sharp rise in local property values could mean a sizable profit when you sell.

Though owning your own home can offer a sense of security, homeownership has its drawbacks — remember the roof replacement? Getting out of a lease is also much less of an ordeal than selling a house, so if you’re not sure where you’ll be next year, renting can save you some costly headaches.

Finally, as listed above, renting and buying a house have their own pros and cons.  Now, you decide – which do you like better, to rent or buy a house?  The decision is very much a lifestyle consideration as it is an economic decision. Either decision could be informed by the individual’s life stage’ such as getting married, starting families and being able to afford to do so. And if you wanted to know more about renting or buying a house, you may contact us at CPD Homes through our landline at 216-282-4332, or shoot me an email at wendy@cpdhomes.com !  We’ll be more than happy to help you decide whether to rent or buy a house for your family!

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