Owning a home offers many benefits but may not be for everyone! Buying a home is 5-10 times more expensive than renting a home initially. That being said, your financial situation will determine if you are ready to buy a home or not. Another driving factor is how long you are planning on staying. Renting is a better option for you If you are not planning on staying in a specific area for long. A lease lasts for about a year and it is not guaranteed that you can renew the lease once the lease is up. Buying a house is more permanent and is a better option if you are trying to settle down. You will also begin building equity and making up costs once you live in the home you own for at least 3 years. Buying and renting both have their upsides and drawbacks. An individual should look over their situation and living preferences before deciding whether buying or renting is the best option for them.
The Break Down
Pros And Cons Of Renting And Homeownership
- Fewer upfront costs
- No mortgage payments, property taxes, insurance, or maintenance expenses
- Do not have to take care of repairs, the landlord takes care of repairs
- More flexibility to move since leases are short-term
- Build credit (if your landlord reports rent payments to the credit bureaus)
- Not able to make changes to home without the landlord’s consent
- Have to pay a security deposit that you may not fully get back
- Inability to build equity, because your home is not your property
- If you have pets you may have to pay a monthly pet fee
- May not be able to renew the lease when the lease ends
- There may be certain restrictions on your lease
- Can make changes to your home as you please
- There can be tax benefits
- More stability, especially with schools
- Home can increase in value and you can build equity
- No restrictions or landlord to answer to
- Can build credit
- More upfront costs
- Have to pay mortgage payments, property tax, insurance and any maintenance fees
- Will have to pay for and fix repairs
- Have to stay in the home for at least 3 years if you want to make up the costs
- Property value could decline
More In-Depth Explanation Of The Benefits Of Owning A Home
When you own a home it allows you to be able to make changes to your home such as decorating as you please and improving or renovating your home. You can make your home yours and stay there for as long as you please. If you have kids then where you live determines what schools they can attend. Owning a house in a specific school district is important if you want your kids to be able to keep attending a specific school. There are tax benefits when you own a home as well, you can claim any deduction for mortgage interest and property taxes when you file your tax returns. Your home can increase in value over the years and you can build equity. Another bonus is that you have no restrictions and more privacy. You can have as many pets as you want, Airbnb your house, and more. There is no landlord that you must keep in touch with or that will check up on you. Lastly, you can build credit if you pay your house mortgage bills on time. Overall, owning a home gives you more stability and in the long run, you can make up the costs that you paid upfront.
The Most Common Types Of Homes
Another important factor to look into is the type of home you want to live in.
Single Family (Detached) – A home that sits on its own property and is separate from other homes. A single family home is the most sought-after type of home. An individual owns the entire home and property that it is on.
Condominium (Condo) – A building or community of buildings in which units are owned by individuals. Owners of the units only own the interior of their unit and not anything on the exterior. The building or community of buildings is governed by the homeowners association, who makes decisions on behalf of all unit owners and owns the communal areas and land.
Townhome – A home that shares one or more walls with other independently-owned units. They are usually rows of uniform homes that are two stories. Owners own the interior of the unit, the roof, lawn, and driveway. Maintenance costs for the home are determined by the homeowners association.
Apartment – A building that is among other buildings on shared property. Apartment buildings are owned by a single entity, often a corporation. Tenants rent units and share common areas with other tenants. They have to go through a lease.
Co-op (Cooperatives) – A multi-unit apartment building where each resident has an interest in the entire building, and a lease that enables the owner to occupy a particular apartment unit there.
Why You Should Use Lauren Benson Real Estate To Buy A Home
Lauren Benson, a South Florida real estate agent, can assist you when you are buying a house in Florida. She offers advice when it comes to what type of home you should buy based on your situation. Lauren understands that a person’s financial situation is a big factor in determining if they should buy or rent a home. She will go over all the benefits and things to think about when buying a home to make sure you are ready for this step. Buying a home is a big deal and comes with a lot of responsibility. She will guide you through the process and make your buying journey as enjoyable and straightforward as possible for you. Call Lauren Benson at 914-980-9669 if you are looking to find out more information about buying a home or if you are ready to start your home search! Lauren can assist you and answer any questions you have.