by Jackson Bogen
Choosing whether to buy or rent a home in the modern era is one of the biggest financial choices one will make in their lifetime. Both choices come with their own pros and cons, and this blog will discuss them.
Before we get started it’s important to note that everyone's personal and financial situations are very different. Choosing whether to buy or rent a home can also be dependent on other obvious factors not discussed here. It is important to look at your individual needs and wants as well before making this decision.
Renting a home:
Renting a home is when you pay a fee monthly to a landlord in the form of a lease. You do not actually own the home, and cannot sell it when you decide to move out. In addition, your landlord can decide to increase your rent whenever he pleases, and charge additional fees for utilities and more. There is also the slight chance the landlord can make you switch properties or throw you out. However, renting a home means you are not tied down to a specific property in the long run and can move around at your leisure. You do not have to pay the hefty down payment that is usually associated with owning a home, and you do not have to pay interest. In my opinion, renting is a lot better in the short term, as you don’t have to go through all the fuss of buying and tending to a home. Furthermore, when it is time to move out, you do not have to worry about selling the home. And most likely, you are paying a lot less.
Buying and Owning a home:
The financial aspect aside, owning a home brings a sense of pride and accomplishment. You can design the home however you want and cater it to whatever needs / goals you have in mind. You can sell your home after owning it for an extended period of time generally for a nice profit. Additionally, in most cases owning a home can be utilized for some nice tax write offs. However, as a homeowner you should be expected to pay a ton of fees and maintenance. Such fees are: property taxes, homeowners insurance, pest control, garbage collection, and more. Furthermore, you will end up paying a large amount of money in interest assuming you take out a mortgage.
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