Buying your first home is one of the most exciting, yet terrifying decisions to make. It’s an obvious choice for some, but is it the right one for you?
It’s understandable why someone would want to buy a home. It’s a great investment, and once you own it, you get to call it yours, and no one can take it away from you. You get to paint it any color you want and do whatever you like with it. But there are also plenty of reasons why renting might be the better option. Maybe you’re not quite ready to make a big commitment like that, or maybe you have no desire to put in work renovating your new property. Plus, even after the purchase price is taken into consideration, buying a house doesn’t always mean saving money—it depends on the market value near where you live.
Pros and Cons of owning a home
When it comes to pros and cons, the advantages of owning a home far outweigh the disadvantages. For starters, the investment you make towards owning a home goes towards something that will always have value. In today’s unstable economy, buying a property is one of the safest investments you can make.
While this is true, there are some downsides to owning a home, as well. The maintenance can be overwhelming for some people. However, with a little elbow grease, you can do some of the maintenance by yourself. If it’s beyond your capabilities or skills, there are plenty of services available for hire.
Another negative aspect of owning a home is that it can tie you down with its location. If you buy a home that’s not within your ideal location, you may be stuck paying for it indefinitely until you can sell. Also, if your job requires constant traveling or relocating often, homeownership may not be the best option for you.
There’s also always the option to rent out extra bedrooms or an ADU (if you have one) to make some extra cash every month, which can help you with mortgage payments.
If you have enough money saved up and if buying a home is something you’ll enjoy doing (as opposed to just an obligation), then we say go ahead and buy! Just make sure to educate yourself on all the ins and outs of buying a house before signing any contracts.
Pros and Cons of renting a home
One of the most obvious benefits to renting is that you can move location easily, which is especially helpful if you’re just starting out and don’t want to get locked into a long-term mortgage. You also have the option of moving without having to worry about selling your property or dealing with uprooting your whole life. That can be incredibly convenient if you want to be close to friends or family who live elsewhere.
You also don’t have to worry about fixing things yourself. If something breaks, your landlord will deal with it. There’s no need for you to spend money on upkeep or repairs, either—someone else will do that for you.
A major downside, however, is that you are at the mercy of your landlord’s rules and policies. Many communities restrict pets, which can put an end to your dreams of getting a dog or cat if you rent.
And most landlords increase rent each year at some point, so if you stay in your home for five years and inflation goes up 5%, then at the end of that time period your monthly expenses could be much higher than when you started paying rent unless you can find a rent-controlled housing.
In terms of financial stability and security, renting is often better than buying a home because you don’t have any major obligations if your job suddenly becomes unreliable or if your income decreases dramatically due to a layoff or illness.
There are plenty of things to consider when making this big decision. Don’t rush into it—take time to do your research and figure out what’ll be best for you.
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