The Benefits and Drawbacks of Renting vs. Owning a Home

The Benefits and Drawbacks of Renting vs. Owning a Home

Buy or rent home. Real estate concept.

Written by Audrey Duncan

December 22, 2020

Whether you rent out your home or not, you still make memories in them. However, when you look at the feasibility of the matter, there are certain benefits and limitations to owning a home and renting one.

Renting a Home

Benefits

When you rent out a home, you’ll have to pay much less up front, which allows you to spend money on other things that are necessary at the time. Even though there are costs like a month’s rent in advance and a security deposit, it’s still less than the upfront cost of buying a home.

It’s much easier for you and your family to relocate to another area or town when you start working somewhere else.

You can be much more flexible with regards to renting out a home i.e. only rent out as much space as you need, reducing the cost of rent.

You don’t have to spend a lot of money on repairs. Generally, the property owner has to take care of bigger repairs and maintenance.

Drawbacks

Compared to owning a home, there’s a lack of stability with regards to renting out living space. Rent increases steadily over the years, so in a way, you’ll be paying more money over time.

You can’t invest in your home, even if you want to. For instance, you can’t spend a considerable amount on upgrades and improvements because the home isn’t yours.

Owning a Home

Benefits

For starters, owning a home means that you eventually build equity, which means a greater market value. You can call in custom home builders in Spartanburg SC for remodeling and renovations, which builds more equity and adds to value.

You have the personal freedom to customize and make improvements to your home as you please.

You have much more stability with regards to accommodation; you won’t have to deal with rising rent prices.

Drawbacks

You don’t get much flexibility with regards to location, which may result in extra costs when you start working elsewhere. These expenses may be in the form of fuel or transportation costs and even commute time.

Although you’ll be paying less in the long term, it is bound to get very expensive in the early period after buying a new house. For the first couple of years, a greater part of your mortgage payments will be interest. Only after that will a greater portion go towards the principal amount.

You have to make repairs and pay for maintenance costs. These can be minor expenses like switching old light bulbs and even bigger repairs like those for HVAC installations; these require you to call in affordable home builders in Spartanburg SC.

You have to pre-plan how much space you need beforehand. If you’re planning on having kids, you’ll have to buy a bigger house and spend more money before you actually need it. Conversely, saving money by purchasing a smaller house will also prove to be a problem later on.

Although friends and relatives will tell you about the benefits of owning a home over renting, there are drawbacks to both. After all, buying a home is a big decision so it’s best to not rush into any hasty settlements.

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