Rent Versus Own

Buying a home can sometimes be a scary thought, especially as a first time buyer. There's no doubt that it is a major life decision and you may be questioning if it is right for you. In some cases, it may seem easier to find a rental. If you truly break down the differences between renting versus buying, you may see that buying is actually the better choice as it is an investment into your financial future. There is a lot to consider when deciding to rent or buy, but you should consider every aspect involved with renting versus buying.

Some key points to think about include:

Renting:

1. You are building your landlord's wealth by paying his mortgage (plus some) on the rental. 

2. Your monthly payment is likely to increase. 

3. You may be limited to what you can customize in your rental. 

4. You will likely pay rent, fees (such as pet deposits) and a security deposit. You may not receive the deposits back. 

Buying:

1. You build your own wealth.

2. Your monthly payment is locked in. 

3. You have the freedom to customize every aspect in your home from the paint color, to the flooring, to the backsplash and everything in between. 

4. You will likely owe a down payment and closing costs. 

Now let's compare some pros and cons for each. 

Renting Pros:

1. Freedom to move around

2. Landlord often pays for maintenance

3. Doesn't require expensive closing costs

4. Allows you to test different living spaces

Renting Cons:

1. You aren't building any equity

2. Rent could go up over time

3. Landlord might sell or decide to stop renting 

4. Limited sense of stability and/or permanence 

Buying Pros:

1. You build equity over time

2. Your home's value could increase over time

3. Unlimited ability for customization and/or personalization 

4. Sense of stability and/or permanence 

Buying Cons:

1. You may have to pay closing costs and/or a down payment 

2. You are responsible for repairs and maintenance

3. Home value may decrease over time 

4. Less flexibility to move

Our goal at The PCS Pro Team is to help you understand the home buying process and how it can bring you wealth. You CAN be a homeowner, build equity and invest in your future! Whether you decide to rent or buy is solely your choice, but we are here to walk with you step-by-step. After considering the pros and cons to both buying and renting, reach out to us to get any questions you may have answered! Let's compare how much you could save by paying your own mortgage instead of someone else's!