Looking to switch your status from tenant to homeowner? Making the decision to buy your own home instead of continuing to rent is not easy.
There are many pros and cons you need to weigh before you decide to go and purchase your first home. How do you decide whether it’s time for you to own a home instead of continuing to rent? Here are some of the pros and cons of being a homeowner compared to renting.
Pros and Cons of Buying a Home
Pro #1: Your home, your rules.
Most tenants are highly limited by the rules of their lease agreement. This means that they can’t just make the renovations or changes they want to the property without permission from their landlord. As the homeowner, on the other hand, you have free reign when it comes to how you want your property to look.
Con #1: You pay for all the fixes and upgrades.
Now as much as you want to have upgrade after upgrade, you also need to remember that everything you do with your home will be an expense for you. Leaking taps? You have to pay to fix them. Need to repaint peeling walls? That’s going to be a dent on your budget too. Without a landlord, you’re going to have to shoulder every little expense.
Pro #2: You make a good investment.
Houses appreciate in value over time, so you’re highly like to make a profit when you resell your home in the future. While you will have to pay your monthly dues whether you’re buying or renting, the money you shell out as a homeowner will go towards a property that will be yours eventually. With renting, the money you spend each month is gone forever.
Con #2: You need to pay a large amount upfront.
There are a LOT of costs involved when buying a property; it’s not just about the monthly payments on your loan. On top of having enough savings, you also need to have a good credit score to make sure that you can get a mortgage pre-approval with a good interest rate.
Pro #3: You build roots.
As a homeowner, you are able to establish strong ties with the community. It’s a great opportunity to get to know your neighbors and meet new friends especially if you plan on staying put for a long time.
Con #3: It’s more difficult to move.
In contrast, it’s going to be more difficult for you and your family if you need to uproot and move. If your job requires you to stay on the move, it might be best to rent.
When it comes to owning vs buying, there’s no one-size-fits-all solution. Everyone has different priorities, purchasing power, and needs. It’s best to weigh whether buying or renting is the right solution for you by looking at the pros and cons of each move.