Buying a Home Versus Renting
May 03, 2024
Your choices for housing are generally limited to either buying a home or renting. So how do you know which is best for you? Buying a home is a big step and can be a good investment. On the other hand, buying is more complicated than renting and can come with unplanned extra costs. Unfortunately, there’s no universal answer, but there are pros and cons to consider as you determine the option that best suits you.
Buying Pros
- You build equity: Your home’s equity is the difference between how much your home is worth and how much you owe on your mortgage.
- Your payments stay the same: With a fixed-rate mortgage, your payment stays the same over the term of the mortgage.
- Your living space is customizable: You don’t need permission from a landlord or property management company to paint walls, hang shelves, install fixtures, etc.
- You get tax benefits: Your property taxes and mortgage interest may be tax deductible.
- You have more privacy: There may be more of a buffer between you and your neighbors than a thin wall in a rental property.
Renting Pros
- You can relocate more easily: Most rental leases are six months to a year, so relocating isn’t as difficult as having to sell your house to relocate.
- You don’t have to worry about depreciation: If the property value decreases, you don’t have to worry about the loss of equity.
- You don’t have to pay for repairs: Central air repair, water heater replacement, and other costly repairs are the responsibility of the landlord, not yours!
These comparisons don’t mean that if you rent, you should never buy, it’s just a starting point. There are many considerations when trying to determine if you and your family are ready to make the move from renting to home ownership. If you need help deciding whether you should rent or buy, talk with one of our Mortgage Bankers today.
This article may reference and link to third party information that has been verified to the best of our abilities. There is no guarantee of accuracy. Heartland Bank does not endorse companies, services, or products referenced in its articles and is not responsible for the content, links, privacy, or security policies of these third parties. Information in the above article may include material from Ramsey Solutions (https://www.ramseysolutions.com/real-estate/buy-vs-rent-myths-busted) and the Heartland Bank website (https://www.hbtbank.com/).