Rent v. Buy: A Love Story??Not really…it’s a bit more complicated than that. Let me explain. Every day, I come across people who love the idea of buying their first home. They also tell me they love the lifestyle that renting offers them. A classic “having your cake and eating it too” situation. That is why I wrote the article below to help those people to make up their minds.
Which side are you on?
Life is full of tough decisions: Paper v Plastic, Coke v Pepsi, Apple v Android…
As far as heavily debated topics go, you can throw in Rent v Buy. Let’s look deeper a this topic and see if we can crown a champion!
Reasons to Buy
Moving soon? If you plan to set up shop for the long run in particular, buying a house is something worth exploring. The initial costs such as a downpayment will be recouped over time.
In the long run, you will actually OWN the home after you’ve paid off your mortgage. Then you just have the property taxes and insurance with is undeniably much cheaper than rent!
2. More “Fixed Costs”
Landlord ever jacked up your rent $200 a month? Not fun! Of course, property taxes do fluctuate both up and down over time however, a fixed rate mortgage of 15 or 30 years looks stable compared to a fluctuating rental market.
Making a house your home is a lot easier when you call the shots. Want to install something that involves more than a hammer and a nail? Not having to ask permission from a landlord gives you the power to do what you please.
There is also the sense of pride in ownership. This still holds true today. According to a recent RBC poll, 84 percent of millennials believe that purchasing a home is a good investment.
Reasons to Rent
Of course when faced with a leaky faucet or a flooding issue, the renter isn’t going to be swiping his card at the local Home Depot or Googling a plumber’s phone number. Renters know that it will not be their wallet that gets hit by the unexpected up-keep of the property.
2. Short term flexibility
Planning on traveling around the world in the next 2 years? Rushing to buy a house may not be at the top of your list. When your rental lease is up, it’s up. Packing up your stuff and getting a U-Haul needs to be done for renters and buyers. You can kiss that place you called home goodbye. As a homeowner, you would have to be more conscious about the responsibility you have.
3. Lower expectations
How “perfect” does your furniture need to look in your rental unit? How much is that outdated kitchen bothering you? If you are the homeowner, the answer is likely going to be more so. Renters can “deal with” their imperfections better because it’s not their long-term home.
And the winner is…A draw?!
Looking for a more decisive outcome of what makes the most sense for your situation? Let’s chat!