There comes a time in nearly every parent’s life when you must move to a new place. While it can become stressful and you’ll miss your life in your previous residence, the thought of having a fresh start with your family somewhere new can motivate you.
However, the decision always comes down to choosing between renting or purchasing a home. So, which is better for you? Let’s examine the pros and cons of renting versus owning a home to help narrow down your decision.
Renting a Home
There are a few pros that come with a rental. One of the first pros is that moving is significantly more manageable, and you don’t have to worry about house repairs.
Because you have a landlord, any repairs or damages are taken care of through them. Additionally, you won’t have to worry about selling your space because you’ll be on a lease. Lastly, you won’t have to worry about property taxes or bad investments.
Despite the positives of home rental, there are a few downsides. Over time, rent increases often reflect the market changes and the inability to build equity.
An additional downside to renting is that there are no tax benefits. For example, there are no breaks on capital gains, mortgage deductions, or property tax deductions throughout the trajectory of your lease.
Owning a Home
If you’re a first-time homebuyer, you’ll have access to tax benefits and appreciating assets throughout your ownership. Additionally, homeowners have complete control over how they want their homes modified, painted, and more.
You’ll also have stable payments that stay fixed yearly. Lastly, you get to customize your home however you like. For example, you won’t have to worry about getting your landlord’s permission to paint your walls.
There are a few negatives that come with home ownership. First, there’s a risk of the property decreasing in value, and you’ll have to pay for every repair or service that your home needs. You’ll likely have to pay a hefty down payment of 20 percent or more to avoid mortgage insurance.
Which Is Better?
There are pros and cons of renting versus owning a home. The decision becomes based on flexibility and how many responsibilities you want on your shoulders. If you want to be able to leave your home after a lease, renting might be for you. However, home ownership might work better if you want customization and tax benefits.
Homeownership and renting have their positives and negatives, but each has quirks that make it easy for you and your family to live. Enjoy your time in your new home! You’ll grow into your home as the years go by.