Deciding whether to rent or buy is complex. The right choice for you depends heavily on where you live and the local housing market. There are benefits to either option, and it’s a good idea to consider both before you make your decision.
Advantages to buying
It’s a long-term investment
From January 2020 to 2021, home prices nationally rose 11.2% according to the S&P CoreLogic Case-Shiller Index. Most homeowners purchase their home hoping it will be worth more money in the future. And, historically, they do appreciate in value. The amount can depend on how desirable an area it’s in, job growth in the community, housing demand, and the quality of the school district.
Easier to budget
Your landlord can’t raise your rent on a whim, but they can do it when your lease ends. Give or take, it usually goes up between 3% to 5% a year. If you’re renting month-to-month, it can raise even faster – every 30 days with proper notice. With a mortgage, your rate is set when you take out your loan. If the interest rate drops, you’ll have the option to refinance and save even more. Knowing how much you’ll pay for your home for years to come is a great comfort when budgeting and planning for your future.
You can make it yours
You can renovate or decorate your home to your liking. Paint the walls, redo the landscape, renovate a bathroom… your home is your canvas. And, any improvement you make could also increase your property’s value.
Compared to an apartment complex, a single-family home provides loads of privacy. You won’t hear other families, pets, music, or parties through thin walls. And, likewise, you won’t have to worry about upsetting neighbors if you decide to host a late night party.
A sense of home
Buying and living in a house creates a deeper sense of permanency than renting a home. Buying or building a home is a good idea if you’d like to settle down and settle into a routine.
Advantages of renting
It’s easier to relocate
If you’ve got a more nomadic lifestyle, renting is perfect. You can set a countdown for once your lease is up, then you can try a new neighborhood, city, state, or country. If you rent furnished apartments, it’s even easier to pack up your things and head out to a new adventure.
Fits a transitional life
If you’re lifestyle is temporary, like you are just settling into a relationship, thinking of a career move, or going to school; an apartment might suit you well. Your life may change quickly, so it’s good to have the ability to relocate or change your home size and style when you’re ready.
Not everyone is handy or enjoys working around the house. In an apartment, you won’t have to mow the lawn, shovel the driveway, water the grass, fix a burst pipe, replace a broken appliance, or worry about any maintenance. All these activities are physical, take time, cost money, and can disrupt plans – and they can be avoided in an apartment.