Should You Rent or Purchase a Home?

In this day and age, there are many advantages to renting and owning a home. But, there are disadvantages as well! The answer to this question isn’t so cut and dry. Every person has a unique situation, and there are pros and cons of both to consider. 

What are the Advantages to Owning a Home? 

The housing market in 2021 has had an unprecedented shift. Mortgage rates are lower than ever! If you purchase a home now, you are saving on potential interest if you plan to stay in the area more than five years. Owning a home offers the advantages like:
1. Building Equity
2. No Landlord to Make Your Decisions or Rely on for Repairs
3. More Stability
4. Tax Benefits
5.  Your Home is Yours to Customize

The biggest advantage to owning a home is the ability to build equity. As the housing market changes, owning a home could be advantageous!

What are the Disadvantages to Owning a Home?

While there are a lot of benefits to being a homeowner, there are some disadvantages as well. The biggest, perhaps is that owning a home often requires a lot of saving up and money. Some other disadvantages include:
1. Could Lose Money if the Home Value in the Area Declines
2.  You are Responsible for Repairs and Maintenance
3. Extra Expenses like HOA fees, Utility Costs, ETC

The average cost of owning a home will depend on your area and the current state of the housing market. Depending on your situation, you may find that renting is cheaper than owning a home. If you are interested in calculating the cost of renting versus owning, check out this calculator here

What are the Advantages to Renting a Place?

Renting can be ideal for many reasons. The first is that renting does not require a huge down payment or a mortgage to take care of. Some of the other benefits to renting are:
1. More Freedom to go Where You Please
2. No Mortgage to Tie You Down
3. Not Responsible for Repairs or Maintenance
4. No Property Tax

For many renters, the biggest advantage is the freedom to end your lease and move! Owning a home offers much less freedom. If you do not plan on staying in the area for more than five years, it can be cheaper to rent a place.

What are the Disadvantages to Renting?

While renting offers a lot of freedom, there are some disadvantages:
1. You Will Not Build Equity
2. Your Rent Prices Can Increase Without Warning
3. Your Landlord Can Neglect Your Repairs or Maintenance
4. The Landlord Can Sell The Property
5. Less Stability 

Ultimately, the choice to rent or own is yours! If you are considering the switch and would like to explore your home options, the first step is to find a good realtor. 
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