When searching for a new home, you’re guaranteed to ask yourself the big question: Should I rent, or should I buy? Either choice is a solemn commitment that requires a bit of research on both sides when weighing your options. First, let’s go over the good and the bad of both renting and buying!
Pros and Cons of Renting a Home
- Relief of short-term commitment
- Easy move-out/relocation
- Little to no outdoor maintenance
- Low insurance costs
- Lack of freedom (due to specified lease terms)
- Inability to make renovations
- Issues take longer to resolve (especially with 3rd party rental management)
- Yearly rent fluctuations
- Possible ineligibility for lease renewal
Pros and Cons of Buying a Home
- Security of long-term commitment
- Freedom to renovate/make home alterations
- Investment opportunity
- Money saving
- Building equity + tax benefits
- Large overall financial responsibility
- Additional costs that come with maintaining home
- Complete responsibility for home
- Difficulty with quick move-out/relocation
- Higher insurance costs
So how do you know when it’s time to move?
Renting is a great option if you want a short-term commitment and don’t want to be stuck in one place for the next 5-10 years. However, if you’re ready to find a more permanent residence and want the flexibility of owning a home, it might be time to consider buying. Although buying a home is a greater financial commitment up-front, it can end up being much more cost-effective for you than renting in the long run.
Ready to make the leap from renting to owning?
Here are a few important things to consider: The homebuying process is much more lengthy and intricate than the renting process, but that doesn’t mean it needs to be painful! Doing your research and meeting with real estate agents and loan officers will help you understand the steps you need to take to make a smart home purchase. Try not to get discouraged along the way, either. With the right guidance and informed decision-making skills, your home purchase can reward you with many benefits along the way, via tax deductions, creative freedom, and the sense of community buying a home can provide.
Thinking about purchasing a new home? Finding a professional and reliable title company is essential to the homebuying process. Armour Settlement Services, LLC is a title and escrow company servicing realtors, lenders, and homeowners in Maryland and throughout the country. Contact us today to see how we can help!