Rent vs Buy - What Should You Do?

To rent or to buy is one of the biggest questions prospective first-time homebuyers ask themselves. Renting might feel like you are constantly paying your landlord's bills with nothing to show for yourself while owning a home sounds like a daunting challenge that feels too out of reach. We all have concerns about doing the right thing for ourselves and our families when considering spending a large amount of money, whether that be on rent or a mortgage. To truly understand what is the right choice for you, let's consider some of the pros and cons of each!

“Renting is just throwing your money away”

If you're paying your mortgage to the bank or paying rent to your landlord, there is no escaping the fact that you will have a monthly payment to live in a home. Homeownership DOES often come with a smaller monthly cost than most rental payments, although some costs come with owning a home that you often overlook while renting. Homeowners have to pay property taxes, utilities, homeowners insurance, and keep up with home repairs. You also have to take into consideration lawn maintenance, fuel costs, and general upkeep costs. If you rent the money you pay to your landlord generally covers what they put into the home to care for these needs. When you’re a homeowner you assume the monthly payment in addition to all of these added fees.

“Is renting cheaper in the long run?”

While it's true that when you’re renting a property you don’t have to pay the added expenses of maintenance like roof repairs, new heating system, etc, consider that your rent may fluctuate in price over time. Your monthly mortgage payment is locked in place the day you buy your home. Rents can change as the market changes or if your landlord sells your building. Recently we have all seen that rents sometimes rise faster than we can pay for them, often most renters working multiple jobs. Statistically, it does seem that it is cheaper, in the long run, to own a home due to sustainability and the certainty of your monthly payments.