Sometimes in life, the greatest blessings are the simplest – clothes on our back, food in our bellies and a roof over our heads! Our home could be a one bedroom studio apartment in the city or a sprawling “mcmansion” in the ‘burbs… but the real question is does it make more sense for you to purchase or rent your home?
Buying a home is quite the stressful experience – you’ll sign your life away on hundreds of documents, and then there will be lots of expenses like a mortgage payment, insurance, maintenance, repairs and property tax that you need to take care of not to mention the cost of putting down a lot of cash for your down payment. Renting your home might seem easier in comparison, but there are costs that still need to be factored in like renter’s insurance, a security deposit, and the possibility of financial repercussions to breaking a lease.
As a newly engaged woman, building a home where my fiance and I can create our new life together as husband and wife is on our minds! But in the midst of the stress of planning a wedding, is buying a home right now the best idea or should we continue to rent, but in a place of our own? Time to consider the pros & cons of each:
Pros and Cons of Owning A Home
There are many costs that go into owning a home but there are SO many benefits to having a place that completely belongs to you! One – you get a chance to build equity! Equity represents the amount of your home and you own it. Once you pay off your mortgage completely, you’ll have 100% equity in that particular property. If your home value raises over time and you sell it for more than what you paid, you’re also able to make money. Another great reason to own your home is that it grants you stability. As long as you keep up with your mortgage payments, you are not allowed to get evicted from your home. If you rent, there may be nothing to stop your landlord from renewing your lease. This stability can be extremely important to families, especially those with small children. You also are able to make your own rules. Do you want a dog? You’re allowed too. If you’re thinking about renting a room in your home, you have that option to do so. By owning your home property, it allows you the freedom you would be limited to somebody else’s terms ie, your landlord.
Of course there are some cons when it comes to own your home. You are in charge of fixing all the repairs within your home. This can be anything with your heating system or if your foundation starts to sink. If you had cracks in your drywall, you’ll need to call a professional to come help you. If you live in the local area of Allen Texas there is a company you must call to help called AON Innovation. The drywall team is their specialty and it’s because they take such pride in making the drywall look as if it was never repaired in the first place. No matter what size, small or large, they help repair and match any texture for you! Their service, professionalism, and workmanship is the core of their success. Worried about licensing? They are able to do both residential and commercial work no matter if your home is new construction or a remodel.
Having your repairs done by professionals may cost you some money but it’s money well spent to have it done correctly and the right way one time. If you are renting your home, your landlord is the one to do it and it might not be their speciality so after hours of work and labor, they may still need to call a professional to come help.
Pros and Cons of Renting
Just as buying a home has its benefits, so does renting. I currently rent my home and I love it. My roommate has an incredible eye for interior decorating, and it doesn’t hurt AT ALL that her mom is an interior decorating GODDESS!
When you rent, there’s no need to sink a huge chunk of your savings into a down payment. Typically, you’ll be required to pay a month of rent up front along with a security deposit. In some areas, you may be required to come up with your first month’s rent, last month’s rent, and that deposit. Either way, you’re generally not talking about nearly the same amount as a down payment, which means your money isn’t tied up. Another benefit is it also gives you the flexibility to pick up and move if you need to rather then if you owned your home. When you rent, you’re able to sign a shorter lease with a one year term and if you suddenly get a job in another state, you have the option to break your lease within about 30 days and move without having any sort of financial penalty or the hassle of putting your home up for sale.
There are a few cons is that if someone breaks into your home, you are the mercy of the landlord to have them fix it. This means that maybe your hot water stops working and you’re forced to find another place to shower for a little while until the repair is finished. You also are working with someone else’s rules perhaps not able to paint the walls or not get a dog that you really want. There are many pros and cons to owning a home as well as renting but the most important thing to focus on is what works best for you and your lifestyle right now. You can’t go wrong with either option because at the end of the day, it’s the simple blessings that count!