Most of us will eventually come to a point in our lives where we must face the inevitable conundrum: should I continue renting or settle down and buy a house? This is one of the biggest life decisions you’ll have to make, so don’t be afraid to take your time and do some thorough research!
Becoming a homeowner is a big investment and incredible milestone, but it’s not your only option. Whether you take the leap is ultimately going to depend on your lifestyle and financial circumstances. Step back and evaluate your situation, the direction you see your life heading, and both the advantages and disadvantages to owning or renting a home.
Take a look at what you can expect from each option, and once you make your decision, all there’s left to do is get excited and plan your move!
What are the costs of renting a home?
The regular costs of renting can fluctuate depending on your lease and lifestyle, but the expenses themselves will stay the same. When renting a house, you can expect to consistently pay monthly rent, (sometimes) pet rent, utilities, and renters insurance.
In addition to the recurring monthly costs, you’ll be required to make a few upfront payments as well. Plan on paying a security deposit—usually equal to a month’s worth of rent—your first rent payment, (sometimes) a pet deposit, and moving costs.
What are the costs of owning a home?
The recurring costs of home ownership are certainly steeper than a rental. Along with your monthly mortgage payments you’ll be shelling out property taxes, homeowners insurance fees, property maintenance expenses, utilities, and possibly a homeowners association fee.
Owning a home requires a little more financial responsibility than just a rental. A few one-time expenses you can expect include furnishing your home, making initial repairs, heftier moving costs, and funding any home improvement projects you decide to tackle.
What are the advantages of renting?
As a renter, you won’t have to worry about keeping up with the property or taking care of repairs and issues that crop up. Burst pipe? Call your landlord! Furnace stopped working? Landlord! Many landlords will also cover snow removal and lawn maintenance as well.
It’s much easier to change your living situation when you’re renting as opposed to owning a home. Short-term leases give you more opportunity to relocate with less hassle. It’s also a significantly cheaper and faster process without having to worry about selling your property or moving an entire household’s worth of belongings!
In terms of expenses, renters definitely have less to worry about than homeowners. Monthly mortgage payments are usually higher than rent and some rentals even cover utility costs! Renting a home gives you more opportunity to save money outright, makes it easier to budget, and gives you financial freedom that homeowners sacrifice for years.
What are the advantages of homeowning?
While renters deal with fewer regular expenses, owning a home can be a big payoff in the long run. With your own home, you’ll build equity and credit over time. So, although you may have less directly accessible funds, your capital assets will be far more valuable. There are also some considerable tax advantages to homeowning to consider.
Owning a home gives you a level of creative freedom that renting doesn’t allow. You’re at liberty to make all of the design and style changes you want in a space to make it yours! Decorate, remodel, and invest in home improvement projects whenever you want to cater to your personal tastes.
Sense of Belonging
A house of your own is a better platform for putting down roots and carving out a place for yourself within a community! When you know you’re staying in one place for a considerable period of time, you’re more likely to build relationships and feel at home in your neighborhood. Renting, in contrast, is often more of a transient experience.
After determining whether renting or owning a home is the right choice for you, you’re going to need help making it happen! Dowell’s Moving & Storage can safely and efficiently pack up a home of any size and seamlessly move it from one place to the next. Give us a call at 250-361-9866 today so we can help make your home renting or owning dreams come true!