Should you rent or should you buy a home? It’s a good question, but with no clear answer.
Upside to Buying
• Offers long-term benefits of security, equity, and potential growth in personal wealth. Also, a home’s equity value will appreciate overtime -- when it comes time to sell, you earn a profit
• A house is your legal property, which allows you greater freedom than a rental property. You can alter the property, including décorchanges, landscaping, and renovations, to suit your needs and your style.
• You have the option of becoming the landlord by renting a portion of the house or the entire home. This allows you to generate income and help pay the mortgage.
Downside to Buying
• It’s a big financial responsibility
• There are additional costs to homeownership -- taxes, insurance, and maintenance.
• You run the risk of not making any profit through resale.
• You are less mobile than a tenant.
Upside to Renting
• Flexibility. Renting requires no long-term commitment from a Tenant, and is the best option if you don’t intend on staying in one place for a long time.
• As a Tenant, there is the possibility of living in an area in which you could not afford to buy
• The only insurance you need is to cover your contents.
Downside to Renting
• You are bound by the rules of the lease agreement, which can impact the freedom to use or renovate the property.
• Renting offers no wealth creation or return on investment. You are helping pay the landlord's mortgage.
• You have no control over annual rent increases.
• There is no guarantee that a lease will be renewed when it expires.
If you are thinking about buying a home in the next couple of years, I would be happy to meet with you to discuss your options.