Renting vs. Buying a Home
Renting vs. Buying a Home | The Pros and Cons
Although there are many calculators and articles that look at the financial side of renting vs. buying a home, there is more to take into account when considering renting vs. buying a home.
In recent years, renting has certainly become increasingly popular. From 2004 to 2009 the number of households renting homes has increased by 10% according to a study by the Joint Center for Housing Studies of Harvard University. However, during the same time period the cost of owning a home has gone down drastically, making home buying a more attractive and more feasible option for many.
Stability of Renting vs. Buying a Home
When considering renting vs. buying a home, it is important to note that renting may offer more fixed costs during the term of the lease, as a renter is usually not responsible for the repair and maintenance costs associated with owning a home. However, although rent cost may not fluctuate during the term of the lease, they may go up when a new lease is signed – whereas with a traditional mortgage the mortgage payment will remain consistent during the entire period of the mortgage.
Flexibility of Renting vs. Buying a Home
For a person that does not intend to stay in a given location for an extended period of time renting is often a better option when considering renting vs. buying a home, because renting can offer greater flexibility – when the lease is up the renter can move. Homeowners, however, must often sell their home in order to move to a different location.
Maintenance when Renting vs. Buying a Home
Depending on the terms of the lease, renters often have far less to worry about in terms of maintenance – in many situations maintenance is scheduled and paid for by the landlord. However, the maintenance will often be done on the landlord’s terms. Homeowners have the luxury of handling maintenance of the home however they wish (with the exception of HOA guidelines) but are responsible for scheduling and paying for all home maintenance.
Control when Renting vs. Buying a Home
Control of the home can often be a deciding factor for many contemplating renting vs. buying a home. Buying a home most definitely offers more control and freedom with the home than renting. A homeowner can choose to do what they wish with a home (again within certain city and/or HOA guidelines of course). A homeowner may paint or remodel at their discretion to make the home look exactly how they wish, while a renter will generally have to get approval from the landlord or have to live with the home as is. Also a renter will usually need to get approval from the landlord for pets and/or additional people moving into the home while a homeowner can make these decisions for themselves (again with the exception of certain HOA guidelines).
Renting vs. Buying a Home – Which is Right for You?
The choice between renting vs. buying a home will depend on the financial aspects as well as personal preferences. Five Star Realty is here to help you whether you are interested in renting or buying a home in Punta Gorda, Port Charlotte, or the surrounding areas. Search homes for sale and for rent or contact us with any questions you may have.