There are many elements to consider when making the decision between renting or buying a property. Find what fits best with your current and future financial plans by knowing the pros and cons of each.
With leases varying in length and payment amount, renters have the ability to tailor their fluctuating housing needs while also having the luxury of leaving maintenance projects to the leasing company.
+ Pros to Renting
- Flexibility to move locations
- Can tailor your spending each year to a new budget
- Leasing companies will handle maintenance issues
- Communal amenities included in rent – like a gym, pool or community room
— Cons to Renting
- Rent is paid with no future value built up – you can’t earn your money back later
- Subject to rent increases and possible eviction
- Shared walls with noisy neighbors
Though buying a home can seem daunting, it may actually be more attainable than you expect. Plus, you add future value to the property over time.
+ Pros to Buying
- Have a stable location to call home
- Monthly mortgage payments are generally comparable to rental payments depending on the property and loan length
- Freedom to do unique home improvement projects to add value and appeal
- Will receive value back on monthly payments once you sell
— Cons to Buying
- Additional costs beyond mortgage payments are required to initially purchase a home
- Maintenance projects are up to the homeowner to fix
- Less flexibility to change your location or monthly payments
Weigh the impact of renting or buying on your budget with help from one of our knowledgeable experts at Mortgage Lending Services. Whether you’re in the market to buy or are simply planning ahead, our team will help you form a financial plan to make your housing goals a reality.
Editor’s Note: Segments of this article were taken from mashable.com and nerdwallet.com