Renting or Buying: What Are The Differences?

If you're new to real estate, it can be a lot to take in. Maybe you've rented a home before and you're ready to dive in and buy your first property, or maybe you have no experience with renting or buying and need some information to get started. Either way, here are some pointers for better understanding why now may be the right or the wrong time to buy your first property.

Renting

There's a myth out there that renting is a waste of money compared to buying a home since you aren't investing money into the place where you live. But the truth is living anywhere costs money; it's just that your finances and other factors of your life will determine the best living situation for you. Here are some signs you may want to hold off buying a home for a little while:

• You have debt
  If you have debt you're working to pay off, be it student loans or some other debt, renting can be an ideal option because you won't have unexpected expenses while you're renting. This allows you to budget more effectively (and reliably) to reduce your debt.
• The future isn't set in stone
  If you think your job may change in the near future, or you just aren't sure what life has in store for you for the next few years, renting may be preferable to buying a home because leaving an apartment once your lease is up is a lot easier than selling a home. Houses are typically considered long-term investments, which could be an issue if you don't have a solid plan for the future.
• You want more time
  Homeownership comes with some responsibilities that fall solely in your lap, like mowing the lawn and repairing things around the house. If you rent, many of those responsibilities are left to your landlord, giving you some extra time to enjoy your property and the area.

Buying

Buying a home is certainly a big decision, likely a bigger one than deciding to rent. But if it seems big and scary, don't be afraid! Experienced real estate agents make the buying and selling processes a breeze. If you're considering buying a home, these factors might make up your mind:

• You're investing
  Mortgage payments can sometimes be comparable to monthly rent, but at the end of the tunnel, you'll own your property. If you take care of your property, it can increase in value, giving you more leeway if you'd ever want to move in the future.
• You can do what you want
  This one isn't entirely true — there are limits to what you can do to your property both inside and out — but you definitely have more freedom compared to renting. If you want to transform a room, you can do that. If you want to reimagine your landscaping, you can do that too, because it's your property.
• You have a family
  If you have a family or are planning to have one soon, buying a home is typically the best option because homes are made for families. You have privacy, space, and a long-term place to call your home.

If you're still unsure about what's the best next step in your housing journey, a good real estate agent can help you hit the ground running. It's also a good idea to reexamine your finances and goals for the future.

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