Renting vs. Owning: Pros, Cons, and How to Decide

Deciding whether to own or rent is a big decision that affects your finances and lifestyle. Each option has its pros and cons, but the decision should be based on where you see your life headed and your long-term goals of owning real estate.

While deciding between renting vs. owning is a choice you’ll need to make, this article will cover the advantages and disadvantages of each and allow you to make an informed decision on whether you should rent or own your next home.

Owning a Home: the American Dream

From a young age, we’re sold on “the American Dream” of home ownership. It’s a belief that anyone can become a successful American citizen and own real estate while raising a family and providing for your children and spouse.

But owning a home isn’t always the right choice for everyone. Renting a house or apartment has many advantages that make it a viable option for many young professionals and those who want the flexibility of not being tied down to a property with a long-term mortgage payment.

Pros of Renting

Below are the top benefits of renting a home:

  • Flexibility to move wherever without incurring penalties
  • No large down payment is required 
  • Payments tend to be lower than a similar mortgage payment
  • No need to worry about maintenance and repairs
  • Less paperwork for the application process

Cons of Renting

  • Limited ability to personalize your living space
  • Rent may increase in the future after your term is up
  • The landlord may sell the property and change your lease terms
  • Missing out on building equity in a property

Now that you know the pros and cons of renting, it’s time to cover the pros and cons of owning a home in today’s market.

Pros of Owning

  • You’re building equity in the home
  • Ability to personalize your home with artwork, decor, and painting
  • Homes tend to increase in value over time
  • You’ll build credit with each mortgage payment
  • Your costs will stay the same with a fixed rate mortgage

Cons of Owning

  • Owning is a long-term commitment
  • It’s more difficult to relocate on short notice
  • Home values may fluctuate in the short-term
  • Typically you’ll have a down payment requirement
  • You’re responsible for maintenance and repairs

Is Owning a Good Investment?

The most significant benefit to buying a home is that you’re building equity and your home value will most likely increase once you pay your mortgage off completely. You can use the equity in your home to take out a line of credit or to do a cash-out refinance, which may allow you to purchase additional properties and become an investor.

The Bottom Line

Experts still debate whether renting or owning is the best choice in the long run, but the decision boils down to your lifestyle and long-term goals. 

New families who want to put down roots in the local community may find that home ownership is the best choice for their situation.

Find out why Kaya Homes is the leader in Long Island real estate and are your go-to realtor in the Lynbrook, Oceanside, Malverne, Hewlett, Valley Stream, East Rockaway, Woodmere, Cedarhurst, Hewlett Harbor, and Freeport area.www.kayahomesny.com

 

Fri, 19 Aug 2022 21:52:50 +0000

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