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Should you rent? Or should you own? Weighing the pros and cons

wood house model and coins

Are you faced with the dilemma of buying a home or renting one? To help you reach that decision here’s a list of the pros and cons of renting a home:

Pros

  • Flexibility

    Renting a home gives you better flexibility if you’re still unsure about your long-term goals. It frees you up to accept or apply for a job in another state or abroad because you don’t own property you’ll need have to think twice about before accepting a job offer.

    If you’re the kind of person who wants to get to know a certain neighborhood before firmly planting roots, then renting will give you the opportunity to do just that.

    Moreover, if you’re not yet ready for the financial responsibility of owning a home, renting gives you a roof above you at a lesser cost.

  • No maintenance costs

    When you’re renting you have a landlord or property manager who is responsible for the maintenance of the house.

    You don’t have to worry about paying out of pocket for things like fixing a broken sink, repairing faulty wiring, or other upkeep issues. If you’re someone who isn’t particularly handy around the house, then you can rest easy knowing your landlord will take care of everything.

    Another added benefit is more free time and fewer chores because you’re not responsible for the upkeep.

  • Financial predictability

    It’s easier to budget when you’re renting because you know how much you’re going to spend on housing monthly, thus giving you better control of finances. You also don’t have to worry about mortgage payments and real estate taxes.

    There’s also no risk of losing money on the home, especially since you can never be 100% sure about trends in the housing market. When you rent a home, you don’t have to be anxious about its property value and other important factors.

Cons

  • No return of investment

    One of the main disadvantages of renting a home is having nothing to show for it. You don’t really have anything to gain from the property once your lease is up. If you own a home, you always have the option of selling it later, or renting it out.

  • It can cost more to rent than to buy in the long term

    There are instances when making mortgage payments can cost less than renting in the long run. If you’re looking for a place to settle down or a good investment for the future, paying a mortgage instead of renting is definitely a better deal.

    Buying a home can also give you the ability to build equity, get certain tax breaks, and open up more opportunities for the future.

  • Less freedom over your living environment

    An important aspect of having your own home is being able to truly make it your own. When you rent, you don’t have the absolute freedom to customize your home to your liking.

    You also don’t have control over the scheduling of certain repairs because this is the responsibility of the landlord.

Whether you’re looking for homes for sale or houses for rent in Old Bridge, East Brunswick or Sayreville, NJ, Formula Realty is here to help you out. Just give us a call at (732) 858-5822 or (848) 391-8370. You can also send us an email at mybrokermax(at)gmail(dotted)com.