Rent or Buy now

The topic of whether to buy or rent a home is one that has been on the minds of many Americans lately. With interest rates continuing to rise, some people are wondering if they should continue renting or if they should buy now while prices are still relatively high. Let's take a look at some pros and cons of both renting and buying to help you make your decision.

Renting Pros:

-Renting gives you the flexibility to move much more easily than if you owned a home.

-If something breaks, it is the landlord's responsibility to fix it and not yours.

-Renting generally costs less per month than owning a home would.

Renting Cons:

-You are never really building any equity when you rent since you are not paying off a mortgage.

-Landlords can raise rents at any time, so your monthly expenses could go up unexpectedly.

-You may not be able to have pets if you rent since some landlords do not allow them.

Buying Pros:

-Mortgage payments are typically fixed, so your monthly housing costs will not go up unexpectedly like they could if you were renting.

-When you own a home, you can make improvements to it as you see fit and build equity at the same time.

-Your monthly costs may actually be lower when you factor in things like tax deductions for owning a home.

Buying Cons:

-It can be much harder to move if you own a home since you would have to sell it before being able to relocate.

-If something breaks in your home, it is your responsibility to fix it and that can be expensive.

-Making a down payment on a home can be difficult for some people since it requires thousands of dollars upfront.

In the end, whether or not you choose to rent or buy will come down to what is best for your current situation. If you know you will need to move soon, then renting might be the better option since it is more flexible. However, if you think you will stay put for awhile and can afford the monthly payments, then buying might be the way to go since it offers more stability and builds equity over time. Regardless of what you decide, just make sure to do your research so that you know all of your options! There are a lot of lender programs that can temporarily help reduce the pain of the high interest rates we’re experiencing and hopefully consumers can refinance soon!

If you have any questions or would like to connect with a lender, please give me a call. I’ll be happy to connect you with one of my preferred lenders.