Renting Versus Buying a House: Which is Right For You?
Deciding between buying or renting a home can be challenging and comparing the two costs can be complicated. Contrary to popular belief, owning a house isn’t always better than renting, and finding the right option depends on many factors.
Let’s review some of the benefits and drawbacks of both renting and buying.
Renting provides some stability by helping you predict your monthly rent expense as stipulated by the lease agreement; however, you may experience some financial uncertainty when renting from a landlord that decides to abruptly increase the rent and terminate the user’s lease or effect change.
When you rent, the initial expenditure is less significant when compared to acquiring a house through a mortgage. Most landlords will require you to pay the first and last month’s rent and a security deposit. In a mortgage, you need the down payment, legal fee, stamp duty, and many other costs before the execution of the deed.
Renovation and Upkeep
Unfortunately, you can’t refurbish, renovate, or personalize your house when you are renting, but you are also likely to spend less on repairs or upkeep while renting because your landlord is responsible for fixing the wear and tear in the home. Home owners are able to make as many or as few changes to the home as they’d like to make it their own; however, they should budget for regular maintenance and upkeep also.
Homeownership, though it may be challenging at times, offers deep sentimental value, such as a feeling of stability, a sense of belonging to a community, and the esteem of owning a house. Renting, on the other hand, typically doesn’t provide this same feeling.
If you are the adventurous type and lead a nomadic life, owning a house is not the best option for you. You might not be able to sell your home when you want to or for the price you need, especially if the real estate market is performing unfavorably. If you think you might move in the near future, we wouldn’t recommend purchasing a home just yet.
Deciding whether you’d like to buy or rent depends on your specific individual circumstances and requires a lot of forethought. If you need help making the decision, contact us at Lynx Mortgage Bank LLC.
Lynx Mortgage Bank was founded by a small group of mortgage and financial professionals in Long Island, New York, seeking to offer customers a simple “no surprises” approach to the mortgage process. They offer a full range of products, from mortgages to home equity lines of credit.
Licensed Mortgage Banker; New York State Department of Financial Services.