There are many different opinions when it comes to renting versus buying a home. Before you decide which option is right for you, our real estate rockstars are here to help you understand the benefits and challenges of each.
Business Insider reported that the percentage of Americans renting in 2017 was the highest reported in the last 50 years. Let’s discuss some benefits of renting your next property:
First and foremost, there is much more flexibility inherent to a rented home. Renting is ideal if you are the type of person that likes to move and explore new cities or neighborhoods, or if your job requires you to relocate. Buying a home puts down roots, and is a long-term decision. Deciding to move out of a purchased home is a much more complicated and expensive process when compared to a rented property.
One of the many perks of renting a home is the absence of maintenance costs. In most cases, your landlord is financially responsible for nearly all of the upkeep and repair work the home requires.
Florida Statute 83.13 holds landlords accountable for maintaining and repairing roofs, windows, doors, windows, exterior walls, interior appliances, plumbing, and more. If you own your house, you are responsible for covering all maintenance and repairs, which can add up to tens of thousands of dollars in renovations and upkeep.
While renting you do not have the option to upgrade appliances or other aspects of the property, but if this does not concern you and you prefer things to be “turn-key,” then renting will suit you well.
More often than not, renting a home is less expensive than buying. You are given the opportunity to live in a neighborhood that you might otherwise not be able to afford if you were purchasing the home. The overall cost of homeownership tends to be higher than the overall cost of renting, even if your rent is higher than a monthly home payment. Homeowners have out-of-pocket expenses that can add up to large sums of money, not the least of which is the cost of closing the transaction.
According to the 2018 Home Buyer and Seller Generational Trend Report, Millennials are the highest percentage of homebuyers, at 36%. Additionally, 65% of those were first-time home purchasers. While renting does provide flexibility of location, less maintenance, and less out-of-pocket costs, there are still many advantages to buying a home.
Many people decide to buy a home due to a strong sense of community and family roots that begin to develop as their lives move forward. For most homeowners, you become a permanent member of a neighborhood and may be more compelled to reach out and form new friendships with fellow neighbors and develop a sense of pride in your community.
Buying a home is a long-term investment and a way to build equity. The value of a house will normally appreciate over time, leaving you with a significant lump sum if and when you decide to sell. When renting, you are paying for someone else's asset. Also, when you renew the lease on a rental, the monthly cost usually increases, but a monthly mortgage payment is consistent.
Buying a home that is within your budget accompanied with paying your monthly mortgage on time is a great way to build credit. When you are renting a property, on-time rent payments are not reported to the credit bureaus, however when you pay for your home, it IS reported.
One final financial advantage to buying is that mortgage interest and local real estate taxes are tax deductible!
One of the most exciting aspects of buying a home is making it yours! Whether your decor taste is mid-century modern or boho chic, you have complete control over your interior design. Upgrading appliances, light fixtures, paint, landscaping, or making other home improvements in your rental likely won’t be permissible under your contract.
Here at Stein Posner, we believe that we are your partners. Therefore, we make it a priority to share our real estate experience to help you make the most informed decision when it comes to buying versus renting a home. If you have any more questions regarding real estate expertise, give us a call!