Before making this commitment, it is important to review all of the pros and cons of becoming a homeowner. Review the list below to help you determine whether it is the right time for you both personally and financially to make the jump from renter to homeowner.
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Pros of Renting: |
Cons of Renting: |
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Lower housing costs |
No tax incentives |
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Shorter-term commitment |
No fixed housing costs |
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No, or minimal, maintenance costs |
Cannot build equity |
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Relocation is easier |
Must answer to a property owner |
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Utilities may be included with the property |
Cannot personalize your space |
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No long-term stability |
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Pros of Buying: |
Cons of Buying: |
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Privacy |
Long-term commitment |
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Typically a good investment |
Maintenance/repair costs |
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More stable housing costs year-to-year |
Typically higher costs than renting in the short-term |
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Tax incentives |
Costs of relocating and moving |
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Build equity |
Must pay property taxes |
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Pride in ownership and sense of stability |
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Do not have to answer to a property owner |
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Freedom to personalize your space without any restrictions |
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The move from renting to buying a home is an exciting one, but also something that should be carefully researched. By conducting your research ahead of time and purchasing a home when it is right for you, you will be able to enjoy this accomplishment for many years to come.
Learn more about HOMESTAR’s loan services here.
Sources:
Money Crashers. Renting vs. Buying a House - How to Make a Decision, Pros & Cons. Online. Website URL: https://www.moneycrashers.com/rent-or-buy-a-house/. Accessed July 6, 2018.
My Home by Freddie Mac. Pros & Cons of Homeownership. Online. Website URL: http://myhome.freddiemac.com/buy/homeownership-pros-cons.html. Accessed July 6, 2018.
My Home by Freddie Mac. Rent vs. Buy. Online. Website URL: http://myhome.freddiemac.com/rent/rent-vs-buy.html. Accessed July 6, 2018.
