Many people consider buying their first home to be a major accomplishment. While there are some benefits that come with renting a luxury home, buying a home allows you to build equity and invest in your future. However, before you decide whether renting or buying is right for you, it’s important to be aware of the advantages and disadvantages that come with renting. Here are just a few basic pros and cons to consider when deciding whether to rent or buy your next home.
PRO: Renters aren’t responsible for maintenance
In most cases, people who rent aren’t responsible for their apartment or home’s maintenance. This means that if any issues arise with utilities or appliances, it’s your property manager’s duty to resolve them. While this often alleviates a lot of stress, it can also mean that your property manager may have to enter your home or apartment more often, so be aware.
CON: Lack of equity
As mentioned, many people see renting as essentially throwing away your money because of the simple fact that you aren’t gaining equity. Your rent payment goes to the property manager and it’s easy to feel like you’ll never see it again. Even though renting provides stability, this is the main reason it doesn’t typically work well as a long term financial option. When you own a home, on the other hand, you’re investing in your financial future and can eventually resell the property and get back the majority of your investment.
PRO: Speed of moving process
One benefit of renting is that renters can typically relocate slightly faster than homeowners in the event that they receive a job opportunity, quickly change financial status, or have another unexpected life situation. However, homeowners can often make decisions that expedite their relocation processes as well, such as renting out their current home. Fortunately, about 92% of people now use the Internet in their home search, making it simple to browse homes for rent or for sale online.
CON: Lack of individuality/personalization options
Finally, rental properties can’t typically be individualized or personalized. This means that you can’t just make renovations without getting permission from the property manager, which is often difficult if not impossible. When you buy a home, on the other hand, you’re free to make any renovations you want, or you can even invest in your own custom built home and make the house of your dreams appear before your eyes!
When it comes down to it, making the decision to rent a home is sometimes a viable option, but buying your own home is easily the wisest long term financial decision for most people. Knowing the realities about both renting and buying is the key to making the choice that’s right for you. If you do feel as though you’re ready to browse new homes and become a homeowner, consider looking at custom built homes for maximum flexibility. For more information about owning or renting custom built homes, contact Stony Brook Estates.