Now that you have entered the adult era of your life you are probably trying to sort out your future living arrangements. This can be quite daunting because a lot of factors weigh into this decision. You should take any current debt into consideration as well as your field of work and how much travel, if any, is required. Once you look at these two things then you can ask yourself if you should buy or rent and what type of property would be best for you.
Pros of Buying A House
When you buy a home or buy a condo it is yours and yours alone. This means you do not have a landlord that will be telling you what you can and cannot do. There is the exception to this rule if you purchase within an HOA. If you buy within an HOA then you have a lot of freedom in regards to the inside of the home but you may need something such as board approval for a new fence or additional outside features. You will be paying a monthly mortgage payment through a home loan that is towards a property that will one day be yours. Once that property is paid off you will only have to pay your utilities, upkeep and taxes. This means you will be mortgage free and able to focus on building up your savings account. You also have the freedom of selecting the type of house you want to buy.
Types of homes include:
- Single Family Home (detached and has its own yard space)
- Townhouse (several in a row with shared green space)
- Duplex (2 homes connected by a shared wall. Each maintains their own green space)
- Condo (apartment type units sharing a building)
Cons Of Buying A House
While there are many pros to purchasing a home there are also some cons. You have to be prepared to maintain your home. When you rent the landlord will maintain the property and if something breaks then you call the landlord and they will fix whatever has broken. When you own your own property you will be out the financial expense of anything that breaks. As an owner you are also responsible for the exterior upkeep such as lawn care and snow removal. You are responsible for all utilities as an owner and if you have unfavorable neighbors you cannot simply wait until your lease is up or break a lease and move on to somewhere more fitting.
Pros Of Renting A House
When you rent a house you are renting a lot of space that can accommodate a family. You will pay a monthly rent to your landlord and fill out a lease agreement that can span anywhere from six months to a year or more. If you travel a lot for work and are not home much you will enjoy the perks of renting because you will not be held accountable the exterior upkeep. You will still have a wonderful home to come home to but not the maintenance that goes a long with it. Renting is also a great option for people who relocate for work often. It is easier to rent and move than it is to buy and sell multiple times.
Cons Of Renting A House
Renting is a great short term choice for people. If you do not know where you want to settle down or are always on the move for work it takes a lot of stress out of the day to day activities when you rent. The downside to renting is that you cannot make the home your own. A lot of times landlords will not let you paint or do any type of construction that might open up a space more. You cannot build a deck or an addition or even install a pool or fire pit because the property is not yours. You have to abide by your landlords rules. You are not building equity or your credit score by renting and you are not paying off a property that will eventually be yours.
As you can see, there are a lot of pros and cons to renting and buying homes. You have to look at your current life situation and think about the not too distant future. Take equity, credit scores, security and job stability into consideration when you are deciding which path is the right one for your residential future.