Renting vs. buying a home each comes with their own pros and cons. If you are struggling to choose between the two, refer the breakdown comparing the two choices for some advice.

Freedom

Whether you are renting a home or buying one, freedom is a part of both decisions. However, the ways in which this freedom is achieved is different. When renting a house, there is the freedom to move at any time. The pressures of having to stay in one place due to a large investment or long-term contracts are not present to restrict the buyer. Renting allows the buyer to enter short-term contracts usually on a month-to-month basis or even 12-month agreements, which does not tie the buyer down to one location. Buying a house also has its advantages. The house is essentially under the buyer’s ownership and he or she is able to do whatever is desired to the house. The buyer can decorate, renovate or even remodel any aspect of the house with no restrictions or rules.

Responsibility

Renting a house does not provide the buyer with sole ownership of the property. Landlords are typically present when entering the contract who in most cases, take responsibility in maintaining the house. For example, if there is a pipe leakage, the buyer can easily contact the landlord to have the issue resolved. However, renting has its own disadvantage when it comes to responsibility - since the house is not completely the buyer’s, the buyer must be careful when taking care of the home. It is important for the buyer to understand that damage done to the property can result in it being a liability on the buyer’s side. When buying a house, the buyer is responsible for every aspect. With every leak, crack, and tear, the owner of the house is responsible for solving all problems. 

Money

For renting, there are many cases where the landlord will pay for utilities. Having utilities paid for while renting will greatly help the buyer’s finances as a large amount of expenses will not have to be dealt with. In addition, the dollar amount that renters pay each month is typically less than the cost of a mortgage, with the assumption that insurance, taxes, and maintenance fees are taken into account. In contrast, owning homes require a hefty payment - whether it be down payments or buying outright. Owning homes also involve having to pay real estate taxes and fees that are definitely greater than the cost of renting. The good thing about buying a property is that it is an investment, and with an investment there is the potential to earn a lot by doing nothing. 

Whether you are looking to rent or buy a house, speak to a realtor so that you are fully educated before making the final choice.